On Jan. 16, 2014, NMHC/NAA joined numerous real estate trade associations in sending a letter to Senate Finance Committee Chairman Max Baucus (D-MT) expressing concern over tax reform proposals that would significantly increase the cost of investment in multifamily and other properties.
Chairman Baucus' staff proposed late last year to: retroactively increase to 43 years (from 27.5 years) the depreciation period for multifamily buildings; tax depreciation recapture at a rate of up to 39.6 percent (from 25 percent); eliminating like-kind exchanges; and to repeal the Section 179D tax deduction for energy-efficient investments in commercial buildings.
Although the prospects for enacting tax reform in 2014 remain uncertain, particularly given President Obama's nomination of Chairman Baucus to become U.S. Ambassador to China, proposals put forth by Finance Committee staff will undoubtedly continue to be considered any time a tax overhaul is on the table. So the multifamily community and the real estate industry oppose proposals that would make it far more costly to invest in commercial real estate and provide housing to America's renters.
Full DocumentTax Reform Comments 2014-01
- Real Estate Coalition Letter on ADS Tax Reform
- Real Estate Industry Continues to Press for 30-Year Depreciation Period for Multifamily Buildings
- End-Of-Year House Tax Bill Includes Beneficial Provision But Lacks Depreciation Fix
- House Votes to Make Permanent Tax Cuts for Pass-Through Businesses
- Top Lawmakers Meet with NMHC Members at 2018 Fall Meeting