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Big Real Estate Moguls Win as Smaller Investors Denied Tax Break (1)

Jan. 29, 2019, 10:03 AMUpdated: Jan. 31, 2019, 4:49 PM

A perk pitched as a boon for mom-and-pop businesses in President Donald Trump’s tax law could shut out smaller real estate investors while benefiting the industry’s largest property developers.

The Treasury Department released final rules recently detailing how owners of businesses such as limited liability companies and partnerships can claim as much as a 20 percent deduction. The 2017 law generally allows professional real estate firms to fully claim the deduction, while restricting most high-earning service professionals, such as doctors and lawyers.

Some Democrats have slammed it as a giveaway to the wealthy and claim that several members of the...

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