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 broader economy.
SmartStop Self Storage REIT, Inc Reports 2020 Full Year Results
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SmartStop Self Storage REIT, Inc Reports 2020 Full Year Results
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Phoenix American Releases White Paper on 1031/DST Trends with Insights from Key Industry Experts and Sponsors
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In a new paper,
Alternative Venture Capital: The New Unicorn Investors, professor Anat Alon-Beck explores the rise of alternative venture capital (AVC) investors and the ways in which these investors are affecting unicorn companies. The paper cautions that that many of the calls being made by industry groups, such as the Institute for Portfolio Alternatives, the Committee on Capital Markets Regulation and others to broaden access to retail investors to private investment opportunities as more companies choose to remain private longer, should be considered carefully in light of changes in the types of institutional investors. The paper also points to action taken by the Department of Labor (DOL) in June 2020, through an information letter providing greater latitude to plan fiduciaries to invest in private equity funds if certain requirements are met.