The Real Estate Bloggers

Real Estate Tax On Partnerships Could Hurt Recovery

Posted: 08 Jun 2010 09:01 PM PDT

Money Sometimes I think our federal government is not in a hurry for the real estate recession to end.

Winding it’s way through Congress right now is a bill that will extend the carry over provision on taxation to real estate partnerships. Essentially this will double the interest rate for investor partnerships.

Just figured I would let you know. (Please do not shoot the messenger.)

Real estate makes up nearly 50 percent of all partnerships in America. While some will claim carried interest is a loophole, the carried interest tax hike now making its way toward the Senate floor is, more than anything, a tax on real estate partnerships large and small. It is not a tax on hedge funds that tangentially affects real estate; it is a real estate tax hike that tangentially affects hedge, venture capital and private equity.

According to the IRS, these real estate partnerships hold over $1.5 trillion of commercial real estate assets throughout America, including: rental housing, office buildings, shopping centers, medical facilities, hotels, senior housing and industrial properties. The carried interest tax proposal would change the taxation of all these partnerships – for past and future investments. via The Hill

Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published.

Real Estate Tax On Partnerships Could Hurt Recovery