As the GOP tax bill works its way through Congress, Dallas real estate professionals have every reason to be nervous. When the tax code was last rewritten 30 years ago, real estate came out on the losing end and sent the Dallas economy spiraling into a deep, dark recession.

Whether boom or bust, real estate is a key component in Dallas’ economic engine. According to the Dallas Morning News, several parts of the tax code can adversely affect the real estate industry. Limiting deductions for residential mortgage interest and property tax could cause a reduction in home sales. Eliminating federal tax credits for historic property redevelopment could bring the preservation of old homes and landmark buildings to a screeching halt. And tax changes on carried interest could diminish real estate investments. 

Dallas real estate investor and developer Ross Perot Jr. is particularly worried that tax reform could have déjà vu consequences on today’s booming industry.

“One thing we are all watching is the tax code," Perot Jr. recently told a gathering of property executives. "Go back to [the] 1986 Tax Reform Act and the trauma it had on the real estate industry.

"The real estate lobbying groups have done a pretty good job of making sure we are not hurt like we were in '86," he said. "But once it gets into committee and there is so much pressure to pass a bill, stay on top of it, and make sure you are talking to all our local representatives and have a voice in what you need in the tax bill."