PALM BEACH, Fla., July 28, 2020 /PRNewswire-PRWeb/ -- With the widely-debated next round of stimulus legislation underway, the HEROES Act, there is much debate surrounding its implications. One concern of Julio Gonzalez is the immediate expensing of real estate.
Julio Gonzalez has been doing everything possible to educate policymakers of the risks it poses to the long-term health of the economy.
Those in favor of immediate expensing policies are the likes of the Tax Foundation, Larry Kudlow and Congressman Kevin Bradoy. The reasoning behind their support of this issue raises questions due to the historical effects of similar measures that devastated the real estate and banking industry in the 1980s. If we take a trip "Back to The Future" we passed tax laws that allowed accelerated depreciation of entire building structures, which resulted in one of the worst depressions in the real estate industry. This boom and the bust of the 1980s real estate market is often described as the result of overbuilding. Overbuilding in real estate means that developers build more projects than markets demand, leading to a decline in the value of real estate.
To avoid repeating the problems that overbuilding caused (when we last had tax law that accelerated full structure depreciation) is the reason that industry associations like the Real Estate Roundtable opposed efforts to move to the full-expensing of structures under the Tax Cuts and Jobs Act (TCJA) of 2017. Ultimately the Real Estate Roundtable prevailed, and Congress elected not to exclude full expensing of structures in the TCJA due to that it was expensive and risky.
After several press appearances, where Julio Gonzalez articulated his concerns about immediate expensing, the Tax Foundation put out a statement recognizing that this tax law imploded the real estate industry in the 80s, but that in their opinion, it would be different this time. Julio Gonzalez questioned the validity of the Tax Foundation view on the consequences of immediate expensing and invited them to go live with him on America's Voice this Thursday, July 30th at 2:30pmEDT.
Engineered Tax Services, Inc. (ETS) is a licensed engineering firm that focuses on federal, state, and local tax benefits. Founder and CEO, Julio Gonzalez, is an expert in tax reform whose strong presence is helping define our current tax laws. Under Gonzalez's guidance and true insight into how the industry is shaping, Engineered Tax Services is one of the largest, fastest growing, and most innovative engineering, energy, and specialty tax credit services firms in the country.
SOURCE Engineered Tax Services, Inc. (ETS)
These press releases may also interest you