Tax Cuts and Jobs Act: Crucial Changes Affecting Real Estate Taxation
Author: Greg White
||2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
Do your business clients have real estate holdings? Let Greg White walk you through all of the critical changes made by the TCJA that affect real estate taxation. He covers an array of topics, including bonus depreciation after the TCJA, Section 179 and its application to real estate property, interest deductibility under Section 163(j), and more.
Publication Date: August 2019
CPAs and CPA aspirants in public practice and tax staff in private practice who have some experience with federal taxes.
- Bonus depreciation after the Tax Cuts and Jobs Act
- §179 and its application to real property
- How and when the de minimis rules can be used on residential real property remodels
- The QBID (20% passthrough deduction)
- Interest deductibility under §163(j)
- Capitalization of interest on self-constructed assets
- Recognize the best depreciation method for real estate improvements, including Tax Cuts and Jobs Act changes
- Identify and apply effective dates for the new rules
- Recognize and apply the new rules for de minimis expensing updated for changes in the Tax Cuts and Jobs Act
- Describe changes made to interest deductibility area. Should some real estate owners "elect out" even though their gross receipts are significantly below $25 million?
- Identify and apply the new QBID rules (20% "pass-through deduction") to real estate rentals
- Describe how the Tax Cuts and Jobs Act (TCJA) applies to interest capitalization on self-constructed assets
NASBA Field of Study
Taxes (2 hours)
Basic Understanding of federal income taxation concepts as applied to real estate ownership.