What Trump Or Clinton Could Mean For Commercial Real Estate
AUGUST 29, 2016 | BY GEOFFERY METZ | GlobeSt.com
Presidential elections aren’t known for cooperating with commercial real estate fluctuations. The current wave of uncertainty,…
CORONA DEL MAR, CA – Presidential elections aren’t known for cooperating with commercial real estate fluctuations. The current wave of uncertainty, however, has this ballot feeling particularly ill timed. So how do the major candidates’ policy proposals fit in for commercial real estate investors? They’re already having an impact as we are seeing many investors pulling the trigger on acquisitions and dispositions now to get in front of what may come, depending on who they think will be elected to office, says Eric Wohl, EVP at Hanley Investment Group.
“Every presidential election creates new uncertainty about the direction of the economy,” said Wohl. “The goal is to have a clear picture on how each presidential nominee, if elected, will impact the commercial real estate industry. While some policy details may be vague or change, all we can do is to interpret the provided information at this time to the best of our ability.”
So, with that in mind, what are the candidates’ policies on capital gains and tax reform? “Hillary Clinton is proposing a sharp increase in the capital-gains tax rate for the highest earners for investments held for less than six years, according to reports,” said Wohl. “Under the current law, gains from assets held for more than a year often qualify as long-term capital gains, which are taxed at a top rate of 20%. Under Clinton’s proposal, for individuals in the top bracket, the tax would start at 39.6% for investments that taxpayers maintained for two years or less, then gradually decrease after that, back to the 20% rate only for assets held for more than six years. Taxpayers outside the top bracket, which starts at $466,951 for married filers, would see no change.”
The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.