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Opportunity zones may have been the most-discussed federal tax change for developers and property owners in the past two years, but changes to various deductions and treatments of pass-through entities also have caught interest.

The changes stem from the Tax Cuts and Jobs Act, which was signed into law by President Trump in December 2017. Lawyers and real estate investors are still working to untangle the provisions and apply them to their investments and income.

鈥淭his is the first year in which people are filing tax returns and finding out what it really means in terms of the bottom line,鈥� said Kevin Pearson, a partner and tax lawyer at Stoel Rives in Portland.

Bonus depreciation has allowed property owners to expense 100 percent of a property’s cost and deduct it the first year the property is placed into service. The bonus depreciation applies to properties placed into service through 2022. Bonus depreciation 鈥渉as been meaningful to people,鈥� Pearson said.

鈥淏onus depreciation is one of those that Congress believes spurs investment,鈥� he said. 鈥淚’m not sure it does, but people take advantage of that.鈥�

The change in tax law is temporary, but Congress may choose to extend it. It is one of many maneuvers enabled by the 2017 tax law. The legislation has kept lawyers busy in applying some confusing and poorly written sections to their clients’ situations.

鈥淭his act was written so fast and so hastily that it’s an absolute mess,鈥� said Mark LeRoux, a partner and tax lawyer at Tonkon Torp. 鈥淭he drafting is horrible. There are cross-references to sections that don’t exist.鈥�

The legislation made deductions of business-related meals more difficult, and eliminated deductions for business entertainment in most circumstances. That’s made it impossible to deduct golf rounds or suites at sports stadiums from federal taxes as business entertainment.

Companies organized as C corporations saw their income tax rate fall to 21 percent. That has primarily benefited large corporations such as Nike and Intel; public companies are often organized as C corporations.

鈥淭hat mostly helps bigger, more established companies that are C corps,鈥� Pearson said.

The legislation also lowered taxes for pass-through entities such as limited liability companies. Developers and investors often use LLCs as entities that own real estate.

Other changes affected Oregonians’ personal taxes. A $10,000 limit on state and local tax deductions from federal tax has hit taxpayers in relatively high-tax states such as Oregon. On the positive side of the ledger, fewer people are now subject to the alternative minimum tax. The tax was meant to limit the use of loopholes to avoid paying taxes.

鈥淭he alternative minimum tax got friendlier,鈥� LeRoux said.

Another change in tax law allows taxpayers to deduct up to 20 percent of qualified business income from sole proprietorships, partnerships or S corporations, among other entities.

That provision has led many parties to change partnership structures in which beneficiaries received guaranteed payments, similar to a salary, to a share of profits instead.

鈥淎 lot of people are rewriting their LLC agreements,鈥� LeRoux said.