Cushman & Wakefield Report: Tax Reform in High SALT States
Tax Reform in High SALT States: Is the Whole Greater than the Sum of the Parts for CRE?
The recently enacted tax reform legislation (the Tax Cuts and Jobs Act or “TCJA”) was an attempt both to lower taxes and to broaden the tax base in a number of ways to compensate for tax cuts.
There is a tendency to focus on the change in tax liability from a single provision in isolation rather than to look at the tax reform law as a whole, due in part to the complexity of the varied and countervailing provisions within the law.
Nonetheless, it is absolutely necessary when examining tax reform to focus on the net effects. The best examples of this are the limitations of state and local tax (SALT) and mortgage interest deductions (MID) and their impact on taxpayers and communities, particularly in higher-tax, higher-income areas.
Read this report to learn more on the implications in California, New York, and other markets.
