Pass-throughs and Capital Gains Inflation Indexing

There is growing interest in Washington in reducing the tax burden of capital investment by indexing capital gains for inflation.  This is not a new issue, but it is attracting new momentum, and could have enormous consequences for long-held assets, like real estate. The Director of the National Economic Council, Larry Kudlow, is a strong … Continue reading Pass-throughs and Capital Gains Inflation Indexing

New Rules on Interest Deduction Taking Shape, but Real Estate Questions Remain

This afternoon, the Treasury Department released Notice 2018-28, which provides initial guidance related to the new limitation on the deductibility of business interest (section 163(j).  The Notice indicates that taxpayers can rely on the guidance until proposed regulations are issued. The Notice leaves unanswered some of the key issues related to the financing of real … Continue reading New Rules on Interest Deduction Taking Shape, but Real Estate Questions Remain

Founding Principles – About “The Blue Slip”

The Origination Clause of the U.S. Constitution (Art. I, Sec. 7, clause 1) states that "All Bills for Raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills."  The clause grants the power to tax to the chamber directly elected by the people--part … Continue reading Founding Principles – About “The Blue Slip”

A Closer Look at Opportunity Zones

The Tax Cuts and Jobs Act created a somewhat-overlooked but potentially powerful new incentive -- tax-advantaged "Opportunity Zones" designed to attract private investment in economically distressed, low-income areas. Such efforts are not new.  Prior laws have created tax-advantaged Empowerment Zones (1993), Empowerment Communities (1993), and Renewal Communities (2000), as well as tax preferences for investment … Continue reading A Closer Look at Opportunity Zones

Latest FIRPTA Changes Will Increase Investment, Jobs in U.S. Real Estate

Omnibus appropriations legislation enacted March 23 includes extensive changes to the Foreign Investment in Real Property Tax Act (FIRPTA).  The changes, contained in the tax technical corrections section of the bill, are designed to ensure the reforms adopted in 2015 operate as Congress intended and encourage job growth and new investment in U.S. real estate. … Continue reading Latest FIRPTA Changes Will Increase Investment, Jobs in U.S. Real Estate