March highlights from The MWE Advisor: how the new tax law affects both rental real estate owners and the construction industry.
How the New Tax Law Affects Rental Real Estate Owners
There’s more to the Tax Cuts and Jobs Act for owners of rental real estate than just lower ordinary income tax rates. Here’s an overview of some new or modified provisions that will generally provide favorable tax outcomes for rental property owners — along with an unfavorable change that could hit owners of properties that generate tax losses.
New Tax Law Could Change Construction Industry
Residential construction could take a hit from the Tax Cuts and Jobs Act. The law reduces the mortgage interest deduction, doubles the standard deduction and either cuts or reduces some itemized deductions. On the other hand, the law could be a boon for commercial builders. Businesses will be able to realize current tax deductions for certain expenditures, and the law provides a flat rate of 21% for C corporations. Here are the details.