Tax and Accounting
Here is a summary of NMHC’s research and information on Tax and Accounting.
- limiting taxpayers’ ability to defer gains from like-kind exchanges;
- increasing tax rates on ordinary income;
- doubling the tax rate on long-term capital gains;
- taxing unrealized capital gains at death; and
- taxing carried interest as ordinary income.
NMHC led a real estate coalition to illustrate the potentially detrimental impacts of the Biden Administration’s infrastructure package proposed revenue-raisers.
In connection with hearings held by the House Ways and Means, Senate Finance and Senate Banking Committees, NMHC weighed in to underscore the importance of including housing provisions, while also warning against enacting tax pay-fors that would erode job creation and hinder economic growth.
A new report released by Ernst & Young finds that repealing the Step-Up in basis tax provision would cause damage to the Gross Domestic Product (GDP) and a significant decrease in job creation.
According to the study’s findings, repealing the step-up in basis would result in:
- 80,000 fewer jobs in each of the first ten years;
- 100,000 fewer jobs each year thereafter; and
- A $32 reduction in workers’ wages for every $100 raised by taxing capital gains at death.
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