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Tax Law Roundup current law developments in U.S. taxation

Category Archives: Legislative

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IRS Releases FY 2017 Green Book Revenue Proposals

Posted in General, Legislative

It’s that time of year when the President releases his annual wish list of tax revenue proposals, also known as the “Green Book”.  The 2017 Green Book includes many familiar items such as taxing Carried Interests as ordinary income, capping certain itemized deductions by individuals at a 28% tax rate benefit, and broad-based international tax reform. … Continue Reading

Senate Passes Extenders Legislation – President Quickly Signs Targeted Tax Cuts Into Law

Posted in Legislative, Real Estate

Today the Senate voted 65-33 to pass the Extenders bill (H.R. 2029) and the President quickly signed it into law with the official Date of Enactment being December 18.  As discussed in more detail in yesterday’s blog, the legislation makes permanent or creates an extended life for many take breaks that have been annually renewed, or “extended” for many… Continue Reading

House Passes Massive Extenders Package – Moves to Senate

Posted in General, Legislative, Real Estate

Today the House passed the much talked about “Extenders” legislation and it now moves to the Senate with momentum.  The bill makes many of the annual extenders permanent (or for a period of multiple years) and covers a wide range of topics.  Below is a list of some of the provisions affecting the real estate industry,… Continue Reading

Congress Passes Partnership Audit Reform – Obama Expected to Sign

Posted in General, Legislative, Partnership/LLC, Passthrough Entity, Procedure

This morning the Senate passed H.R. 1314 (The Bipartisan Budget Act of 2015), which will completely change the way partnerships (and LLCs taxed as partnerships) are audited.  The House passed the legislation on Wednesday and it is reported that President Obama will sign the legislation as soon as it reaches his desk.  As discussed in… Continue Reading

The House Joins the Senate Finance Committee in Proposing FIRPTA Reform

Posted in International, Legislative, Real Estate

FIRPTA real estate tax reform continues its momentum with the recent release of bill text for H.R. 2128, the latest House bill introduced by Kevin Brady (R-Texas) and J Crowley (D-NY). In connection with the filing of the bill, Brady stated that H.R. 2128 is similar to the changes approved by the Senate Finance Committee and… Continue Reading

Senate Passes Extenders Legislation For Calendar Year 2014

Posted in General, Legislative

In the annual ritual of last minute legislative action, the Senate has passed the renewal of nearly all of the so-called Extenders legislation by a vote of 76 to 16, which will make the tax incentives applicable to calendar year 2014 if signed by the President.  As is all too common, the Tax Increase Prevention… Continue Reading

Senate Finance Reveals Energy Tax Reform

Posted in Energy, General, Legislative

Today the Senate Finance Committee announced their proposal to streamline the energy tax rules in their latest installment of the Sen. Baucus tax reform proposals.  The staff discussion draft focuses on streamlining energy tax incentives so they are more predictable and technology-neutral.  Under current law, there are 42 different energy tax incentives, including more than… Continue Reading

Baucus Proposes Reforms to Administration of Tax Code

Posted in Legislative, Procedure, Tax reform

In the second part of the new Senate Finance Committee tax reform proposals, Sen. Baucus introduced proposals to combat tax fraud and make filing simpler and more efficient.  An overview is below.  For details see the detailed summary and proposed legislative text.   Tax Filing Reforms Improve the information return filing process by (1) not… Continue Reading

Sen. Baucus Reveals International Tax Reform Draft

Posted in General, International, Legislative, Real Estate, REITs

Today Sen. Baucus of the Senate Finance Committee released a discussion draft for international tax reform.  The proposal is the first in a series on how to reform international tax rules with more drafts expected later this week.  This action by the Senate is in contrast to the recently expected delays by the House.  Feedback… Continue Reading

Senate Leaders Call For “Blank Slate” Approach to Tax Reform – Senators Have July 26 Deadline to Justify Tax Breaks

Posted in Legislative, Tax reform

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) today proposed a “blank-slate” approach as a legislative starting point for tax reform and called on Senate colleagues to provide proposals by July 26 for tax expenditures to add back and improve in a reformed tax code.  The press release stressed that… Continue Reading

FIRPTA Reform Reintroduced in Senate

Posted in International, Legislative, Real Estate, REITs

Senators Bob Menendez (D-NJ) and Mike Enzi (R-WY) and 22 co-sponsors introduced S.1181, the Real Estate Investment and Jobs Act of 2013, based on the original S.1616 legislation introduced in 2011.  The legislation would increase from 5 to 10 percent the amount of publicly traded REIT stock minority shareholders can hold without triggering FIRPTA tax…. Continue Reading

Senate issues 8th Tax Reform Paper: Types of Income and Business Entities

Posted in Compensation, Debt vs. Equity, Financial Products, Legislative, REITs, S corporation, Tax reform

The Senate Finance Committee issued its 8th tax reform paper, discussing the tax treatment types of income (e.g., ordinary, wages, capital gains) and business entities (e.g., C corporations, pass-throughs, RICs, and REITs).  The report also addresses the disparate treatment between debt and equity and financial product reform.  For pdf version click here.  This follows the… Continue Reading

Senate Finance Issues Economic and Community Development Tax Reform Paper

Posted in Legislative, Tax reform

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

Senate Finance Issues International Tax Reform Paper

Posted in General, International, Legislative, Tax reform

The 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 reform

Senate 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 Tax

On 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 reform

On 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 reform

The 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 reform

On 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 Estate

Today 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 reform

Rep. 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 corporation

Rep. 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 reform

  On 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, Legislative

On 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