As real estate is a high-value asset, the uneven distribution of wealth generated from property transactions often contributes to issues of income inequality and wealth concentration, leading to broader socioeconomic disparities. Prior to 2016, land and building transactions in Taiwan were subject to a separate tax regime that land transactions were taxed under a flat-rate Land Value Increment Tax, while house sales were taxed under higher progressive income tax rate. The separation tax rate on land and house resulted in tax arbitrage and speculative behavior on local real estate market. In 2016, Taiwan implemented a tax reform on real estate transactions, the Integrated House and Land Transactions Income Tax (IHLTIT Version 1.0) and a revised version 2.0 in 2021 which extend the taxable period to two-year holding period, and expanded the scope to include pre-sale houses. This study investigates the impact of the tax reform 1.0 & 2.0 on the real estate holding by listed companies over year 2012 to 2023. We employ difference-in-difference fixed effects models and find that firms with higher cash flow tend to allocate a greater proportion of resources to real estate investment. However, both the implementation of the IHLTIT 1.0 and 2.0 significantly reduced corporate investment on real estate. These findings suggest that the IHLTIT reforms increased the transaction costs associated with corporate real estate transactions. We furthermore compare the floor area of new buildings approved during the IHLTIT 1.0 and 2.0 implementation periods and no significant difference was observed by individuals. However, the floor area for commercial and industrial usage were shaped not only by the tax reforms but also by industry-specific factors and broader economic conditions such as COVID-19. The findings offer important implications for tax policy design and corporate capital allocation in real estate investment.