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Dozens of lawmakers to reap tax windfall from last-minute GOP loophole


Senators Ron Johnson (R-WI) and Bob Corker (R-TN) speak during the U.S. Senate Budget Committee markup of the FY2018 Budget reconciliation legislation on Capitol Hill in Washington, November 28, 2017.

Joshua Roberts | Getty Images

Senators Ron Johnson (R-WI) and Bob Corker (R-TN) speak during the U.S. Senate Budget Committee markup of the FY2018 Budget reconciliation legislation on Capitol Hill in Washington, November 28, 2017.

Dozens of lawmakers stand to reap a tax windfall thanks to a last-minute loophole inserted in the sweeping GOP tax overhaul bill, according to a review of federal financial disclosures.

The provision, which gives favorable tax treatment to a common form of real estate income, would also create generous tax saving for President Donald Trump, who derives much of his personal fortune from real estate.

The measure — added late Friday to the $1.5 trillion package of tax cuts — reduces the tax rate on “pass-through” income derived from real estate. Owners of such businesses are allowed to “pass through” the profits from these enterprises to their individual tax returns, which lowers the amount of tax they owe.

Those benefits will now go to roughly four dozen Republican House and Senate members who voted for the bill, according to an analysis of personal financial disclosures for CNBC by the Center for Responsible Politics.

Under federal financial disclosure rules, members of Congress are only required to report their assets in a range of dollar amounts, so a full accounting of lawmakers’ holdings isn’t available. But GOP lawmakers who voted for the bill had combined real estate assets eligible for pass-through treatment of as much as $390 million in 2015, according to the center’s analysis.

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