Taxation

This section links to the study “Potential Changes to the Taxation of Carried Interests in Commercial Real Estate” by David C. Ling and Joseph L. Pagliari, Jr., published in 2025. The paper evaluates how proposed reforms to the taxation of carried (or promoted) interests could affect U.S. commercial real estate investors. Using a detailed financial model, it quantifies differences in effective tax rates for general and limited partners and highlights how changes in capital gains rates would unevenly impact after-tax returns. The accompanying financial model used in this analysis is also provided below for reference.

Download Excel Model 

The Excel file includes macros that generate results for each scenario. Before running the “Run All Macros” command in the Macros tab, users can adjust the assumptions from the Base Case Assumption tab and the co-investment requirement from the A.1 tab as needed.

This is a macro-enabled workbook and may require enabling macros before running the calculations.