Real Estate Tax Policy Focus: State of the Industry Meeting Update

Slide Note

The real estate industry faces ongoing tax policy changes with a focus on bipartisan agreements, economic stimulus, affordable housing incentives, and upcoming tax debates. Key topics include tax reforms, incentives for commercial-to-residential conversions, and advocacy for fair tax policies. Looking ahead, priorities include preserving deductions, avoiding new taxes, and supporting job creation through foreign investment.

oner812 Follow

Uploaded on Oct 10, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript

The Roundtables Tax Focus State of the Industry Meeting January 23, 2024 www.rer.org

Tax Policy in Washington Never Stands Still Bipartisan tax agreement $117B in economic stimulus in 2024 alone $6.2B for low-income housing tax credit Bonus depreciation, interest deductibility New Treasury tax guidance poses challenges for the industry FIRPTA proposed regulations Potential narrowing of limited partner exception for self- employment taxes Supreme Court weighing in on taxation of unrealized gains

RER Tax Policy Advocacy in the Near Term In divided government, RER seeking opportunities to advance incremental, bipartisan tax reforms and fixes Expansion of affordable housing incentives Tax credit for commercial-to-residential conversions Tax relief for debt workouts Retail Revitalization Act Opportunity Zone extension Fair tax accounting rules for condo construction

Looking Ahead: RER Tax Priorities in the Next Major Tax Debate But the key tax debate for real estate will come in 2025 as expiration of the Tax Cuts and Jobs Act approaches The 2017 bill was most notable for what it DIDN T do: Preserved real estate like-kind exchanges Excluded real estate from interest deductibility limits Retained capital gains treatment for carried interest Those issues are settled and should stay settled. In 2026, the pass-through deduction expires, individual rates increase, and SALT limitation sunsets. In contrast, the 40% corporate tax cut was permanent.

Looking Ahead: RER Tax Priorities in the Next Major Tax Debate RER priorities in the next tax reform debate . Ensure tax fairness (vis- -vis corporations) by preserving the pass-through deduction and low rates on pass-through businesses and their owners Avoid new or discriminatory taxes on real estate, entrepreneurs, and capital investment Maintain rules that encourage job-creating foreign investment in U.S. real estate Extend and strengthen tax policies that support important priorities like housing and community development (e.g., LIHTC, OZs)