Shearman And Sterling

Real Estate, Manhattan Skyline

Jun 14, 2018

Real Estate Structures Enabling Investors to Use the Section 199A Qualified Business Income Deduction


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Partner Kris Ferranti (New York-Real Estate), counsel Derek Kershaw (New York-Tax) and associate Matt Collins (New York-Corporate) co-authored an article titled “Using the Section 199A Qualified Business Income Deduction” that was published by Real Estate Finance & Investment.

The article provides a brief analysis of the implications of the new 20 percent business income deduction available to pass-through entities and real estate investment trusts under the Tax Cuts and Jobs Act. The article offers insights into structuring real estate investment vehicles to reduce the income tax imposed on rentals and other business income. According to the authors, “The decision whether or not to restructure a real estate business to take advantage of the [qualified business income] deduction will necessarily call for a fact-specific inquiry into the needs and demands of both the project and its investors.”

Read the full article here.

Authors and Contributors

Kris Ferranti


Real Estate

+1 212 848 7117

+1 212 848 7117

New York

Derek Kershaw



+1 212 848 7964

+1 212 848 7964

New York