Media Coverage
Source: Bloomberg Politics
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
12.18.17
As 2017 comes to a close, lawmakers are trying to finalize a new tax reform bill that, if passed, would be considered by many as the first legislative success for the Trump administration. After being unable to secure the votes to pass an alternative healthcare bill, Republicans have been negotiating within their own party to ensure that this bill does not suffer the same fate.
During the process, a last-minute provision was added to the tax bill that would allow real estate businesses to take advantage of a new tax break for “pass-through” businesses, reports Bloomberg. It would provide a potential multimillion-dollar advantage for real estate investors like President Donald Trump, his son-in-law and advisor Jared Kushner, and Tennessee senator Bob Corker.
According to Miami Tax partner Michael Kosnitzky, the deduction is “contrary to the administration’s job-creation policy initiatives” because it’s being offered to businesses that don’t intend to employ many people.
The change will essentially allow real estate firms to use a 20-percent deduction that would have originally been off-limits to them, Kosnitzky explained to Bloomberg. Additionally, the change would still leave out some investment partnerships, such as those that invest in tangible property, like artwork or land, or those that have few employees.
Read Bloomberg’s full coverage of the change to the tax bill here.