Tax Reform Implementation
Tax laws and regulations should preserve opportunity and competition in commercial and multifamily real estate.
Overview: MBA encourages policymakers to support and enact tax laws that support long-term economic growth, which is the foundation of strong commercial, multifamily, and residential real estate markets. The Tax Cuts and Jobs Act preserved the business interest deduction, like-kind exchanges (under section 1031), LIHTC, private activity bonds and the treatment of mortgage servicing rights. It also provides a deduction applicable to pass-through entities. Final IRS rules implementing addressed MBA concerns only in part. MBA continues to analyze the final rules and urges policymakers to clarify the applicability of the deduction to taxpayers in the mortgage banking business.