Sister Kathleen Reilly 1942-2018
Sister Kathleen Reilly died on Wednesday, January 17 at Good Samaritan Hospital in Suffern, NY after a long illness. She was 75. The daughter of Jerome Reilly...
Real Estate Investment Trusts, Publicly Traded Partnerships And The 20% Business Deduction
Real Estate Investment Trusts (REIT) and Publicly Traded Partnerships (PTP) get special treatment in the Tax Cuts And Jobs Act (TCJA)- Sorry I just can’t call it tax reform. Maybe tax deform, but that sounds silly. TCJA repealed Section 199, a kind of freebie 9% deduction, that created a frenzy of gaming in somewhat limited circles – Brewing coffee is manufacturing. I mean who knew? -and replaced it with a much broader 20% deduction (Section 199A). To qualify for the deduction your trade or business has to be paying people W-2 wages or have depreciable assets if your taxable income exceeds a threshold. REIT dividends and PTP flow-through income get the 20% deduction with no strings.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.