The Impact of the Taxpayer Relief Act of 1997 On Real Estate Investors

  • December 20, 1997
  • • Written by: J. Russell Hardin Jack R. Fay

December 1997, Vol 22, No 3
Abstract: If real estate investors are to maximize after-tax profits and maintain appropriate levels of capital investment, they must have a working knowledge of the latest legislative changes enacted by the United States Congress that pertain to real estate. On August 5, 1997, President Clinton signed into law the Taxpayer Relief Act of 1997. This sweeping piece of legislation contains over 800 amendments to the Internal Revenue Code and approximately 300 new tax provisions. Investors in real estate are urged to look closely at this new tax legislation to seek ways in which they can significantly diminish their future income taxes. Significant changes include a lower tax rate for capital gains, the tax-free treatment of lessee construction allowances, the tax treatment of real estate investment trusts, and more.