Great story. Kushner’s arrangements described have all the hallmarks of tax shelters I teach in my classes (leverage + interest deductions + accelerated depreciation + nonrecognition). TCJA generally maintained or expanded such real estate tax shelters in 6 ways. (1/6)
First, TCJA cut top rate from 39.6% to 37%. Second, it cut top rate on pass-through income to 29.5%. While there are provisions meant to limit this deduction for higher-income taxpayers, they effectively do *not* apply to real estate. (2/6) washingtonpost.com/business/econo…
Third, TCJA allows RE businesses to immediately write off 100% of cost of qualified leasehold property placed in service before 2023. (3/6)
Fourth, for the most part, TCJA expands accelerated depreciation for other real estate. berdonllp.com/resources/clie… (4/6)
Fifth, as article notes, TCJA repealed like-kind exchange nonrecognition for all property *except* most real estate. marketwatch.com/story/the-new-… (5/6)
Finally, TCJA limits interest deductions *except* for real estate. RE developers can either elect out, or aren’t subject b/c they can add back depreciation deductions when calculating the limitation thru 2022. Overall, sweet deal for Trump family! bswllc.com/resources-arti… (6/6)
