tra 1986: The Tax Reform Act of 1986 and Investment Real Estate
- 12/29/08 08:10 AM
In 1986 Congress passed a tax reform act (TRA 1986) whichin addition to simplifying the tax code, also eliminated and restricted the tax benefits associated with investment real estate. The tax reform did three things: 1.) It limited the adjusted gross income to $100,000 for those individuals that invested in real estate and wanted to be able to depreciate the property and receive a tax deduction for doing so. The deductions were phased out and pro rated for those with an AGI between 100-150K. And for those with an AGI of greater than 150K, the losses were carried forward, indefinitely. Prior to 1986, any American was able to benefit (2 comments)