The Hartford Business Journal published a column by Philadelphia Real Estate Chair Edward Reitmeyer for its latest real estate focus, on how commercial property owners are impacted by the new tax law.
Hartford Business Journal
By Edward Reitmeyer, Partner-in-Charge, Tax Services - Philadelphia
Real estate entities may take a 100 percent interest expense deduction. However, if this deduction is made, the entity must use the alternative depreciation system for nonresidential real property, residential real property and qualified improvement property. The alternative depreciation system does not allow for the use of “bonus” depreciation and has longer recovery periods than typical tax depreciation.