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Article: Tax Reform Act of '86 has revolutionized real estate industry.(Mid-Year Review and Forecast, Section III)
- Article from:
- Real Estate Weekly
- Article date:
- July 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 Hagedorn Publication. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Over the next 10 to 15 years, the real estate market will look more like today's corporate market. Real estate companies will prevail with over half of real estate assets in public vehicles (REITs), with the balance in private corporate vehicles, opportunity funds, and private holdings by institutions.
The single key factor responsible for the explosive growth of real estate companies stems from the Tax Reform Act of 1986. Prior to the passing of the Tax Reform Act of 1986, most real estate was owned by limited partnerships because of the overwhelming tax benefits of such structures. After 1986, those reasons disappeared, making it more advantageous for real estate ...