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How New Ideas in Washington Might Affect Commercial Real Estate

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” top_padding=”2%” bottom_padding=”2%” overlay_strength=”0.3″ shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”2/3″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]In the coming months we may see changes within the tax code that will positively affect your investments as well as your real-estate.  First, as part of the Details Of […]

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” top_padding=”2%” bottom_padding=”2%” overlay_strength=”0.3″ shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”2/3″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]In the coming months we may see changes within the tax code that will positively affect your investments as well as your real-estate.  First, as part of the Details Of Donald J. Trump’s Tax Plan, the plan purposes a one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate.  Sine we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible.  U.S.-owned corporations have as much as $2.5 trillion in cash sitting overseas.  Some companies have been leaving cash overseas as a tax maneuver.  Under this plan, they can bring their cash home and put it to work in America while benefiting from the newly-lowered corporate tax rate that is globally competitive and no longer requires parking cash overseas.  If your retirement account or IRA is invested in companies that have heavy overseas income they potentially will bring back a large share of the cash sitting overseas.  This will have a direct value to your investments and the economy as repatriated money is re-circulated within the U.S.

The second, as part of a pro-growth tax plan, is lowering corporate taxes to a flat 15% rate.  This will immediately stop the out flow of corporations that are using inversion purchases to escape the very high US corporate tax rates of 39% once you hit $100,000.00 of taxable income.  What is corporate inversion?  Corporate inversion is the process by which companies, especially U.S.-based companies, move overseas to reduce the tax burden on income.  Companies that receive a significant portion of their income from foreign sources employ corporate inversion as a strategy, since that income is taxed both abroad and in the country of incorporation.  Companies undertaking this strategy are likely to select a country that has lower tax rates and less stringent corporate governance requirements.  Stability of corporations is of utmost importance.  Public corporations are owned by us, as in you and me, and the more successful they are the more they will increase research and development, expand manufacturing, pay dividends, buy back shares or purchase other companies.  The success of private corporations, where most of us work, will help us one day in retirement and spur the growth of commercial real-estate in the meantime.

Restructuring the way we tax corporations who do business overseas and by enticing them to look inside our borders to establish their operations with tax breaks will benefit all of us (as in you, me and the US economy).[/vc_column_text][/vc_column][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”1/3″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_widget_sidebar sidebar_id=”blog-sidebar”][/vc_column][/vc_row]

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