Y. David Scharf Authors Article on Impact of Tax Reform on the Hospitality Industry

January 31, 2018 – Morrison Cohen Partner Y. David Scharf authored the article “Tax Reform's Unintended Impact on Hospitality” that appeared in Commercial Property Executive on January 29, 2018.

The article analyzes the consequences of two potential changes in the Tax Cuts and Jobs Act (TCJA) that could have long-term implications for the hotel industry.  The first is the TCJA's elimination of business entertainment deductions that could negatively impact hospitality spending, which might significantly lower pre-tax revenue. The second is the TCJA's reduced rates for certain real estate pass-through companies that will encourage hospitality companies to restructure themselves. That, in turn, will generate increased deal activity as a strategy for increasing post-tax net profits.