Tax Laws and Changes

[Jeff Spacek]

Hello Happy Thursday!

Does anyone understand what these new tax laws mean when it comes to real estate?

Does this mean everyone who owns a corporate entity will pay less in taxes across the country?

Final question, does this in anyway shape or form change property taxes? Lower property taxes or when filing taxes?

Thanks for reading and have a great week!

Jeff

[Nicholas Aiola]

@Jeff Spacek There are a lot of changes in the new tax law; it's the biggest overhaul of the Tax Code in over 30 years.

It's impossible to generalize an effect of a tax change to "everyone" but C Corporations are certainly winners here, thanks to the tax rate slash to 21%. Pass-through entities (sole props, LLCs, partnerships, S Corps) will get a nice 20% deduction (depending on a variety of factors) as a result of the new law.

Property taxes (along with state & local taxes) are capped at $10k for homeowners (personal residence) claiming this deduction on Schedule A (Itemized Deductions). For investors, property taxes are still deductible in full against rental income.

Hope this helps!