Real estate investors are facing a squeeze play on Capitol Hill, with important tax incentives nearing an end-of-the-year deadline.
Last week the House approved what’s known as the Tax Extender Act, a Christmas tree bill filled with nearly 50 tax program extensions beyond their December 31st scheduled expiration date.
Two of the extenders are especially significant for investment real estate: First is the so-called “leasehold improvements” provision, which allows owners of commercial, retail, hotel and office buildings — large and small — to use an accelerated 15-year depreciation schedule in writing off renovations and upgrades they make to their real estate.
The House bill extends favorable leasehold writeoffs for another year.