Tax Tensions: Real Estate's Battle for Relief

The U.S. commercial real estate sector seeks to preserve tax relief measures from the Trump era as it contends with rising delinquency rates, high vacancy, and expensive financing. Industry leaders emphasize maintaining key deductions and like-kind exchanges to manage costs amid economic uncertainties and political changes.

The U.S. commercial real estate industry is advocating for the continuation of tax relief measures introduced during the Trump administration, citing struggles with increased delinquency rates, significant vacancy levels, and costly financing issues.

Industry representatives express particular concern about preserving essential tax breaks and incentives, including pass-through deductions and like-kind exchanges, amidst fears of higher taxes and expiring 2017 tax cuts. The potential for increased costs is alarming to an industry already grappling with liquidity challenges.

With looming economic concerns and a $1 trillion debt challenge next year, the sector views maintaining existing tax measures as crucial. Notably, contributions from the real estate sector favor Republicans, reflecting the political stakes in this complex tax policy debate.

(With inputs from agencies.)