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The CRE Industry is Battling Back Against Proposed Tax Reforms


The CRE Industry is Battling Back Against Proposed Tax Reforms
Industry pros fear that the slew of proposed measures, if enacted, would lead to a steep drop in deal volume and pricing.
Commercial real estate  stakeholders are rolling up their sleeves and digging in to battle proposed tax reforms that could deal a devastating blow to the investment marketplace.
The two issues garnering the most attention are a $500,000 limit on the amount of capital gains that could be deferred in a 1031 exchange and an increase in the maximum capital gains tax rate from 20.0 percent to 39.6 percent. Commercial real estate industry advocate argue that those two items combined would deliver a one-two punch for investors across the board as it would generate significantly higher tax penalties following the sale of a property. Industry participants are also worried that the new tax rules would significantly reduce investment sales activity and send ripple effects across the broad ....

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