Ray Beeman, principal and leader, Washington Council EY, sat down for a video interview at Nareit's REITwise: 2025 Law, Accounting & Finance Conference® in San Antonio, Texas.
Beeman discussed the risks and limited opportunities for REITs in the current legislative efforts to extend provisions from the Tax Cuts and Jobs Act (TCJA). He noted the primary risk lies in potential changes to the state and local tax (SALT) deduction, especially the possible elimination of property tax deductions—something that would significantly hurt REITs, he noted. However, Beeman expressed optimism that strong arguments on Capitol Hill could prevent this.
He also highlighted the expiring pass-through deduction for shareholders as a key area of concern, suggesting its extension—or ideally, permanence—would be a positive outcome.
Beeman also contrasted the incoming Trump administration's tax policy team with that of the Biden administration, pointing out that the new team brings deep experience in Washington and a strong understanding of Congressional processes, potentially leading to more practical policymaking.
On tariffs, Beeman noted that their impact on REITs is largely indirect—affecting the economy and tenants more broadly. However, the unpredictability of tariff policy increases uncertainty, which could negatively influence the sector in the near and long term.