The new tax plan includes some changes to income property investments that owners of income property should be aware of. The ownership period to include carried interest in the lower capital gains rate has increased from a minimum of one year to a minimum of three years. Before three years, it will be taxed as regular income. The depreciation schedule for residential rental property has been adjusted and is now a 30-year schedule. The 40-year nonresidential schedule remains unchanged. The tax changes also affect pass-through businesses, usually small business partnerships and LLCs, adding a 20% deduction phasing out for income above $315,00 for joint tax returns. What has not changed is that investors will still be able to take §1031 exchanges on like-kind property and still receive reduced tax rates on gains/profits taken on the sale of property.