"Tax Reform" Changes Will Take Immediate Effect

The Tax Cuts and Jobs Act (the “Act”) was signed into law on December 22, 2017. The Act brings about immediate, sweeping changes to the federal income tax laws—especially relating to the commercial and residential real estate industries. Highlights of the Act relating generally to U.S. real estate businesses and their owners also include 20 percent deduction for qualified business income of individuals, business interest deduction limitation, and modification of the net operating loss deduction. Given the extensive nature of the changes and complexities of the Act, the ultimate impact of tax reform on each taxpayer is highly individualized.