Trump Set to Implement Significant Tax Reductions:
Most multifamily properties are owned as groups such as LLCs and S Corporations that are not subject to federal income tax. Instead, partners are directly taxed on an individual basis taking revenue into account. Trump’s plan would lower the maximum tax rate for pass-through business income from its current rate of 39.6 percent to 25 percent. In addition, the new policy would tax individual wage income at a maximum rate of 33 percent with intermediate rates of 12 percent and 24 percent. As an investor, those are significant savings!
Reducing Capital Gains Tax Rates and Carried Interest:
The policy would tax capital gains, and interest at ordinary income tax rates subject to a 50 percent exclusion. Thus, capital gains would effectively be taxed at a maximum rate of 16.5 percent, lower than the 20 percent current-law maximum rate!
Figure 1- Occupancy and Rental Rates Per Quarter
Figure 2- Average Sales Price Per Unit Per Quarter
By the Charts:
The Tucson Multifamily Market is trending up in 2017 as property values are on the rise. The demand for rentals has continued to be strong as rental rates continue to increase in 2017. Now is the perfect time to invest! Please Contact Chuck Corriere for a free consultation. If you would like to be added to our email list please enter your information here or on the fill in window to the right.
Chuck Corriere, MBA