Eddie Geraghty, partner with MWA CPAs & Business Advisors, was recently quoted in two articles regarding President Trump's tax reform plan. The Dallas Business Journal and Dallas Morning News articles highlight the key provisions of the President's plan that was announced last week.
The Dallas Business Journal article, “How Trump’s Tax Plan Could Boost Foreign Investment in Dallas Real Estate,” focuses on the implications that the plan could have on the Dallas real estate market. The proposed elimination of the “death tax” has the potential to increase foreign investment in real estate markets. Currently, upon their passing, individuals are taxed on their real estate holdings if they exceed $5.49 million or $11 million for a couple. Foreign investors are taxed on their United States holdings if they exceed a mere $60,000. There is hope that the plan would positively impact the real estate market, but also speculation as to whether this proposed reform truly has the potential to be successful in stimulation of the real estate economy.
The President’s tax plan is very high-level at this point, leaving a lot unknown. Eddie commented to the Dallas Business Journal that it would be hard to provide a client with concrete advice based on the details available at this point. “Can I tell a client to take a decision based on this? Not really,” he said.
The Dallas Morning News article, “Trump's Plan for the 'Biggest Tax Cut' in U.S. history Features Sharp Cuts to Business Taxes,” discusses the many provisions of the tax reform plan, including the reduction in the corporate tax rate from thirty-five percent to fifteen percent, elimination of the majority of itemized tax deductions and doubling the standard deduction for tax return claims.
The article also highlights changes for “pass through” businesses, which pay taxes though their owner’s personal returns, and the proposed reduction in the tax rate from almost forty percent to fifteen percent. Eddie commented in the Dallas Morning News article that reducing the burden of a higher tax rate would make a “big difference” for many small businesses.
Click here to read the full Dallas Morning News article. Click here to read the full Dallas Business Journal article.