Trumps New Tax Plan, Does it hurt RE Investors?
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?