The Many Unknowns In The Tax Bill’s CRE Provisions
January 2, 2018 | Erika Morphy | GlobeSt.com
WASHINGTON, DC–As 2017 wound to a close residential home owners went into a scramble. With the Tax Cut and Jobs Act limiting the value of the property tax deduction next year, many were rushing to pay their property tax early and claim the deduction on their 2017 returns. In response IRS released a notice warning taxpayers this maneuver would only be allowed if they had their assessment for 2018.
“What was good advice one day suddenly was not actionable the next day based on a new interpretation by the IRS,” John Chang, first VP of research services for Marcus & Millichap, tells GlobeSt.com.
The commercial real estate community can expect a similar scenario to play out, perhaps again and again, over the first and second quarters of this new year. There are, as several experts have told GlobeSt.com, many gray areas in the bill around the provisions for commercial real estate.