Many media have indicated that legislators are undergoing significant pressure to identify income compensation to finance a growing list of priorities in their tax and tax package.
One of these potential offsets is the elimination or limitation of the deduction of the business tax linked to companies. This potential change in tax law has aroused concern, because a change in land deductibility could have significant consequences for commercial property, promoters and investors.
Current tax treatment of business taxes related to companies
Under the existing tax law, companies can generally deduct land taxes on real estate used for commercial purposes as ordinary and necessary commercial charges. This deduction is a fundamental component of tax policy and prevents companies from being taxed twice – once on the value of their property and again on the income generated from it. For many companies – especially those of real estate, manufacturingAnd retail – property taxes represent an important line element.
What’s at stake?
If the congress eliminates or limits the deduction of the property tax linked to companies, business owners Can face an increase in tax charges, in particular in states with high land tax rates, where the deduction helps to mitigate operational costs. This change could lead to a reduction in operating margins and cash flow For companies, a decrease in real estate investment and development, higher costs have carried out consumers or tenants and an increase in geographic tax disparities.
The decision -makers must carefully consider the broader economic consequences before making changes to this long -standing deduction, because it currently offers financial relief, releases working capital for reinvestment and supports job creation and expansion.
Appeal to action
Real estate professionals And business owners are encouraged to contact their congress representatives to express their concerns and defend the retention of the company based on the company. Their voices can make a difference in the development of the future of tax policy and promote a favorable commercial environment for all.
This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax or other professional services. Consult your advisers regarding the applicability of this content in your specific situation.
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