The Senate Finance Committee issued a tax reform option paper on Economic and Community Development. This is their sixth tax reform option paper. An outline of the reform options are as follows: 1. HOUSING A. Gradually repeal the mortgage interest deduction B. Limit the mortgage interest deduction C. Convert the mortgage interest deduction to an… Continue Reading
Category Archives: Legislative
Subscribe to Legislative RSS FeedSenate Finance Issues International Tax Reform Paper
Posted in General, International, Legislative, Tax reformThe Senate Finance Committee issued a tax reform option paper on international competitiveness. This marks their fifth tax reform option paper. An outline of the reform options are as follows: REFORM OPTIONS I. BASE EROSION AND DEFERRAL 1. Tighten anti-base-erosion rules and reform the treatment of non-subpart F earnings 2. Strengthen the subpart F rules 3. Repeal… Continue Reading
Max and Dave Launch Tax Reform Website to Solicit Comments
Posted in Legislative, Tax reformSenate Finance Committee Chairman Max Baucus (D-Mont.) and House Ways and Means Chairman Dave Camp (R-Mich.) teamed up to launch TaxReform.gov, a new website dedicated to obtaining input from the American public on tax reform. The website is developed in partnership with the Joint Committee on Taxation, and will serve as a platform for the… Continue Reading
Marketplace Fairness Sales Tax Passes Another Hurdle in Senate
Posted in General, Legislative, Real Estate, Sales TaxOn April 25, in a key 63-30 procedural vote, the Senate passed S. 743 (Marketplace Fairness Act of 2013). The final Senate vote is set for May 6. As currently drafted, the legislation will allow states to collect sales/use tax on internet retailers with gross sales over $1 million. The ICSC shopping center trade association… Continue Reading
Senate Finance Issues Third Paper on Tax Reform – Families, Education, and Opportunities
Posted in Legislative, Tax reformOn April 18, the Senate Finance Committee issued its third paper on tax reform called “Families, Education, and Opportunities”. This is the third installment of the Sen. Baucus tax reform project where he believes tax reform is “very much alive and doable.” The report addresses the following specific concerns about the taxation of families and… Continue Reading
Senate Finance Issues Second Paper on Tax Reform – Business Investment and Innovation
Posted in General, Legislative, Tax reformThe Senate Finance Committee had quickly issued its second paper on tax reform called “Business Investment and Innovation.” This is part of a broader project being led by Sen. Baucus on tax reform and follows on the heels of the prior paper on simplification. The paper discusses options for reforming the rules regarding business investment,… Continue Reading
President Releases 2014 Greenbook Revenue Proposals
Posted in General, Legislative, Tax reformOn April 10 the President released his long-anticipated “Greenbook” containing his 2014 revenue proposals. The press release summarizes the various proposals including taxing Carried Interests profits as ordinary income and loosening up FIRPTA restrictions on foreign pension plan investment in US real estate. See U.S. Secretary of Treasury Jacob Lew testimony and Rep. Camp’s opening statement on… Continue Reading
President Obama Proposes Major FIRPTA Reform in Rebuild America Partnership
Posted in International, Legislative, Real EstateToday President Obama released major proposals to encourage private investment in US infrastructure as part of a proposed Rebuild America Partnership. For international investors, the most significant aspect is to reform the FIRPTA rules that tax gains of non-US investors in US real estate. FIRPTA reform has been the subject of much discussion in recent… Continue Reading
Rep. Camp Introduces Small Business/Pass-through Tax Reform
Posted in Legislative, Partnership/LLC, Passthrough Entity, S corporation, Tax reformRep. Camp (R-MI), Chair of the House Ways and Means Committee, introduced a discussion draft of tax reform proposals for small business, mostly addressing pass-through entity taxation. Rep. Levin (D-MI) issued a statement noting that many of the Camp proposals have bi-partisan support. The proposal also includes two alternative reform proposals for partnerships and S… Continue Reading
S corporation Modernization Act of 2013 Re-Introduced
Posted in General, Legislative, S corporationRep. D. Reichert (R. Wash.) introduced H.R. 892, the S Corporation Modernization Act of 2013 (the Act). A significant provision in the Act is to permanently reduce the Section 1374 “built-in gains” period from 10 to 5 years, effective January 1, 2013. If enacted, C corporations that convert to S corporation (or REIT) status would… Continue Reading
Ways and Means Releases Discussion Draft of Financial Product Tax Reform
Posted in Financial Products, General, Legislative, Tax reformOn January 24 the chair of the House Ways & Means Committee released proposals to reform the taxation of financial products. The reforms include: Mark-to-market taxation for speculative financial investments. Specifically the draft would require taxpayers engaged in speculative financial activity—but not business hedging against common risks—to mark certain financial derivative products to fair… Continue Reading
New Tax Provisions: Fiscal Cliff Averted – Sequestration Resumes in Two Months
Posted in Deductions, LegislativeOn January 1, 2013, Congress passed H.R. 8, the American Taxpayer Relief Act of 2012 to avert the immediate tax increase and spending cuts (i.e., the so-called “fiscal cliff”) that was otherwise scheduled to take effect January 1, 2013. The President signed the legislation January 2 and on January 8 the Joint Committee on Taxation… Continue Reading
CBO Report Examines Shifting of Tax Base To Pass-through Entities
Posted in Corporate, Legislative, Partnership/LLC, Passthrough Entity, S corporationA new Congressional Budget Office Report shows a shifting of business structures to using pass-through entities, subjecting the income only to the individual income tax (as compared to the corporate income tax). The report notes that the shift has reduced federal revenues but has probably promoted overall investment and a more efficient allocation of resources. The… Continue Reading
Proposed Legislation to Extend and Expand Green Incentives for Commercial and Residential Buildings
Posted in Energy, Green, Legislative, REITsFour Senators introduced the Commercial Building Modernization Act (S. 3591) (the “Bill”), extending and expanding the federal Section 179D energy efficiency tax deduction. The deduction applies to qualifying energy efficient construction or rehabilitation of commercial and residential buildings. Most notably, the Bill would both significantly expand the deduction and also extend it through the end… Continue Reading
U.S. REIT Act Would Update REIT Statute
Posted in General, Legislative, Real EstateThe recently introduced US REIT Act of 2012 (H.R. 5746) would provide a series of helpful changes to the rules governing Real Estate Investment Trusts (REITs). REITs, which achieve a single level of taxation through a dividends-paid-deduction, have strict rules to ensure that they are focused on long term investment in real estate. The proposed legislation… Continue Reading
Rep. Cantor Introduces One-Year Small Business Tax Cut
Posted in LegislativeHouse Majority Leader Eric Cantor (R-VA) recently introduced the Small Business Tax Cut Act of 2012 (the “SBTCA”), which proposes a one-year tax deduction for qualified small businesses. Under the SBTCA, a small business with fewer than 500 employees would be allowed to deduct 20 percent of its taxable income or domestic business income, whichever… Continue Reading
Levin Reintroduces Carried Interest Legislation
Posted in Legislative, Partnership/LLCRep. Levin (D-MI) today introduced the Carried Interest Fairness Act of 2012. According to the Democrat press release, the legislation “would fix the loophole that enables private equity managers to pay reduced income tax rates.” The bill is proposed to apply to income from partnerships from taxable years ending after the date of enactment or… Continue Reading
President Releases 2013 Budget Proposals
Posted in General, LegislativeToday the President announced the new 2013 Budget Proposals (the “greenbook”). The White House noted that the budget includes many short-term measures for job growth, tax incentives designed to stimulate jobs and innovation, and tax and spending measures designed to lower the deficit. In total there are over 100 different different revenue and spending proposals. Revenue… Continue Reading
Super Committee Fails to Reach Budget Agreement
Posted in General, Legislative, Real EstateIt is reported that the Congressional “Super Committee” on deficit reduction failed to reach agreement by the deadline, confirming what many had feared. The original plan was for a proposal by today with a formal Committee report due by November 23, 2011, Congressional vote by December 23, 2011 and final approval by the President by… Continue Reading
New “Amazon” Legislation on Internet Sales Remote Sales Tax Legislation Introduced in the Senate
Posted in General, Legislative, State and Local TaxA bipartisan group of senators has introduced S. 1832, which would authorize and provide a streamlined process for states to require sellers, such as Amazon, to collect sales tax on remote transactions. Similar legislation was recently introduced in the House (H.R. 3179) in October. Under the proposed Senate legislation, businesses with less than $500,000 in… Continue Reading
Sen. Reid Proposes 5.6% Millionaire Surtax
Posted in General, LegislativeOn October 6, Senate Majority Leader Harry Reid (D-Nev) introduced the text of a new 5.6% “millionaire surtax” as a replacement for the original offsets for Obama’s American Jobs Act of 2011. The surtax would impose a 5.6% surtax on modified adjusted gross income in excess of $1 million for both single filers and married… Continue Reading
Obama Explains How To Pay For The American Jobs Act
Posted in General, LegislativeOn September 19, President Obama sent to Congress a detailed plan and a “fact sheet” on how to pay for the American Jobs Act through a series of spending reductions, tax increases, and through increasing funding for the IRS. The President’s address specifically highlights his plan to raise the taxes on Carried Interest and describes… Continue Reading
American Jobs Act – Carried Interest and Itemized Deduction Limitations
Posted in General, Legislative, Partnership/LLC, Real EstateOn September 12, President Obama released details of the American Jobs Act, including revenue raisers such changing the taxation of Carried Interest and a limitation on itemized deductions for certain individuals. The Carried Interest proposal is similar in concept to those introduced in prior years in the House and Senate that imposed ordinary income treatment… Continue Reading
President Introduces American Jobs Act
Posted in General, LegislativeOn September 8th, President Obama introduced his American Jobs Act (AJA) proposal to Congress, with a strong push to pass the legislation right away. The AJA includes (1) cutting payroll taxes and a complete payroll tax holiday for added workers or increased wages; (2) extending 100% expensing into 2012; (3) regulatory reforms for small businesses… Continue Reading
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