Say NO to new tax burdens on real estate!

28 05 2010

Congress is considering changes to the tax code in order to pay for a number of tax provisions expiring in 2010. Two of these provisions would impact real estate.

What’s At Stake:

1. ANYONE who receives rental income will be required to file IRS Form 1099 reports if they pay any contractor (plumbers, repairmen, etc) $600 or more in any given year. This onerous provision would apply to even the smallest landlord.

2. Congress is considering taxing “carried interest” at ordinary income rates instead of capital gains. Carried interest rules govern how general partners in real estate investments pay taxes when the investment is sold. Currently, carried interests is taxed at 15%.

These new tax burdens will further delay the real estate market recovery. These proposals are ill-advised, inopportune and potentially destructive.

Please tell Congress to oppose them today.

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