Trumps New Tax Plan, Does it hurt RE Investors?

[Matt Leonard]

While its only a couple hours old, everyone probably hasn't had a chance to fully digest it, and isn't finalized... does this new tax plan help real estate investors?  A couple key areas that have me concerned;

Let me preface by saying that I am not a CPA and invite anyone smarter than me to rip me to shreds :) 

1.  Eliminating some tax brackets and lowering the rates.  Win all around. Go Donny Go!!!

2. The cap on property tax exception at $10k.  I'm unclear if this is per property or total.  If you own 10 units and have 20-30k a year in property taxes, will you be capped at only $10k or is it $10k per property or entity?  This could really suck.

3. Capping the pass through entity (LLC) tax rate cap 25% and corporate (c-corp) tax rate at 20%. I think this is good for those that own in an LLC since the income will be taxed at no more than 25%

4. Eliminating the SALT (state and local tax) deductions.  BIG kick in the junk to us blue-staters with high state income tax.

5. Limiting the mortgage interest tax deduction to the first $500k.  Same as #2 above, is this per person or per property/entity.  Same as #2 above, not sure if this is per person or entity/property.  If it is the former, that is another HUGE kick in the junk.

What are your thoughts?

[William S.]

Maybe the problem is that blue states tax people way too much rather than the issue being the new tax proposal....