Investment News: Coming off a disastrous 2016, sales of nontraded REITs could bounce back in 2017
From Investment News:
After a disastrous 2016, industry analysts and executives are cautiously optimistic that sales of nontraded real estate investment trusts will bounce back next year.
There are a number of reasons why sales of nontraded REITs, declined from nearly $10 billion in 2015 to $4.5 billion in 2016.
Will a new tax code eliminate the current deduction for depreciation of real estate assets over time? Will the 1031 exchange, which allows investors in real estate to defer capital gains taxes, be eliminated?
“By far the biggest story to follow and the potential game change in 2017 is what's going to happen with the tax code,” said Cedrik Lachance, director of U.S. REIT research at Green Street Advisors. “Congress is going to try to reinvent the tax code and that has implications for real estate, although the legislators won't be thinking about real estate.”
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