Tax Impacts

FIRPTA Reform Needed Now to Ease Commercial Real Estate Equity Gap,

Posted on Thursday, June 30, 2011

FIRPTA Reform Needed Now to Ease Commercial Real Estate Equity Gap, Roundtable Testifies; Obama Issues Statement Encouraging Foreign Investment in U.S. Testifying before a House Ways and Means subcommittee yesterday, Roundtable President and CEO Jeff DeBoer urged Congress to move quickly in reformi...

Preserve, Protect and Defend the Mortgage Interest Deduction

Posted on Monday, April 04, 2011

Subject: Co-Sponsor H.Res 25. Preserve, Protect, & Defend the Mortgage Interest Deduction. Dear [Decision Maker], As both your constituent and as one of more than one million members of the National Association of REALTORS, I remain steadfast in my belief that economic recovery depends in large m...

OCC Issues Warning on Real Estate-Owned Exchange Programs

Posted on Monday, April 04, 2011

The Office of the Comptroller of the Currency (OCC) has issued a notice to the chief executives of all the lenders it regulates warning them of the risks involved in real estate-owned exchange programs. The agency notes that deterioration in asset quality due to the weak economic environment has le...

IRS Drastically Increases Its Audits Of America's Richest Taxpayers

Posted on Monday, April 04, 2011

In 2009, the Internal Revenue Service announced plans to unleash a new enforcement unit called the Global High Wealth Industry, the goal being to better investigate the complex finances of America's wealthiest taxpayers. They weren't kidding. Recently released IRS statistics indicate that the fede...

Fiscal Follies: Is it Time to Raise Taxes, Simplify Them, or Both?

Posted on Monday, April 04, 2011

Americans face two very annoying prospects in the next few weeks. One is that the government may shut down because elected officials can't agree on a federal budget that begins trimming the country's routine deficits and spiraling federal debt. The threat of a gridlock-induced shutdown just makes th...

10 Small Business Tax Deductions Most Commonly Overlooked

Posted on Thursday, March 17, 2011

With tax season in full swing, almost everyone is preoccupied with tax returns, W-2s, and old receipts. Preparing your taxes can be very stressful, as can paying the tax bill that comes as a result. However, while paying your taxes may be a requirement, paying too much in taxes is not. There are m...

Ways and Means Committee Repeals Landlord Reporting

Posted on Wednesday, March 16, 2011

The House Ways and Means Finance Committee held a markup to review various 1099 reporting issues. Included in the legislation that was ordered reported from the Committee was a bill that would repeal both the onerous 1099 reporting rules that were included in the Health Care legislation and the la...

How to Refocus U.S. Mortgage Interest Relief

Posted on Wednesday, March 16, 2011

The mortgage interest deduction is a huge budget item – almost $100bn per year in federal taxes forgone – with a weak link to its stated goal of promoting home ownership. In its most recent budget, the Obama administration proposed to eliminate the MID for all taxpayers with annual incomes of $250,0...

Savvy Moves For Tax Refunds

Posted on Wednesday, March 16, 2011

If your tax refund is substantial, consider revising your Form W-4 to have less tax withheld from your paycheck. After all, you don't want to give the government an interest-free loan that you can't collect until you file your return next year. If your paycheck does wind up a little fatter, try to s...

Home Buyer Tax Credit 9/16/08

Posted on Friday, February 04, 2011

Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years NOTE: The 2009 Worker, Homeownership and Business Assistance Act and the American Recovery and Reinvestment Act updated the first-time homebuyer tax credit. IR-2008-106, Sept. 16, 2008 WASHINGTON — First-time homebuy...

Repaying the Home Buyer Tax Credit

Posted on Friday, February 04, 2011

IRS Form 5405 First Time Home Buyer Credit The IRS has issued form 5405, which you will need to fill out if you're going to take the $8,000 first time home buyer tax credit. But Form 5405's instructions include information on who can take the credit, how much can be taken and under what circumstanc...

What are the 2008-2009-2010 housing tax credits?

Posted on Friday, February 04, 2011

The 2008-2009-2010 housing tax credits are federal tax incentives to help revitalize the housing market, prevent foreclosures, and strengthen the economy. The credits are part of the: Worker, Homeownership, and Business Assistance Act of 2009 American Recovery and Reinvestment Act of 2009 ...

Filing for and epaying the Home Buyer Tax Credits

Posted on Friday, February 04, 2011

What is the first-time homebuyer tax credit? The Homebuyer Tax Credit deadlines have passed for most homebuyers. However, a special rule gives an extension to eligible members of the military and other federal employees who served outside the U.S. between January 1, 2009 and April 30, 2010. Homeb...

Low-Tax States Lure New Residents

Posted on Monday, January 31, 2011

More home owners may start factoring in taxes more as they pick where to live, particularly as some states’ dramatic tax increases make them less affordable. Some of the states with the largest population gains from the 2010 U.S. Census are also known as low-tax states, such as Florida, Texas, a...

Understanding inequality, Part II

Posted on Thursday, January 13, 2011

In response to this post, Brookings's Gary Burtless wrote in with some helpful comments on inequality and median incomes that I want to quote at length. Standard disclaimer: I've made light edits for space and clarity. I asked what made inequality jump so sharply in 1987. Probably the tax-reform bi...

IRS Liens 'Torment' Struggling Taxpayers

Posted on Monday, January 10, 2011

WASHINGTON — A government watchdog says the Internal Revenue Service is tormenting struggling taxpayers in the midst of a slumping economy by increasing the number of liens the agency has filed against people who owe back taxes. The IRS filed nearly 1.1 million liens in the budget year that ended i...

Most Americans Say Tax The Rich To Balance The Budget: Poll

Posted on Friday, January 07, 2011

NEW YORK: Most Americans think the United States should raise taxes for the rich to balance the budget, according to a 60 Minutes/Vanity Fair poll released on Monday. President Barack Obama last month signed into law a two-year extension of Bush-era tax cuts for millions of Americans, including t...

Tax Deal Has Home Owner Benefits

Posted on Monday, December 27, 2010

Home owners were among those who benefited from the tax compromise that President Obama signed last week. Among the most home owner-friendly provisions are: Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insuranc...

The tax

Posted on Thursday, December 23, 2010

> "The Mortgage Insurance Cos. of America, a trade group, estimates the deduction > saves borrowers who pay mortgage insurance $300 to $350 a year. To qualify for the > full deduction, you must have adjusted gross income of $100,000 or less. Taxpayers > with AGI of between $100,000 and $109,00...

Tax Cuts For The Rich, Scraps For The Jobless

Posted on Monday, December 20, 2010

The grotesque deal to extend the grotesque tax cuts for the wealthiest of the wealthy has rendered unmistakable something that should already have been plenty clear: Republicans will spend money like drunken sailors bearing home equity lines of credit when that seems politically expedient. When the ...

Obama Signs Tax-Cut-and-Stimulus Package into Law; Measure Includes Real Estate-Backed Provisions on

Posted on Monday, December 20, 2010

With just 14 days before the Bush tax cuts were due to expire, President Obama this afternoon signed the $859 billion tax-cut-and-stimulus package that cleared the House late last night and the Senate earlier in the week. Before the final House vote of 277-148 clearing the measure to go to the Whi...

Senate approves tax cut deal; House Dems weigh amending estate tax

Posted on Friday, December 17, 2010

A sweeping tax package negotiated by the White House and Republican leaders sailed through the Senate on a 81-19 vote and now awaits action by the House as early as Thursday. The Senate vote represented a rare moment of bipartisanship and underscored the depth of concern among lawmakers in both pa...

TAXES

Posted on Friday, December 17, 2010

House passage of a bipartisan tax bill resolves many urgent questions weighing on individuals and businesses—but also creates vast groups of winners and losers among them. Because the deal left in place many tax rates that otherwise could have jumped significantly, and lowers the payroll tax for al...

Congress Sends $801 Billion Tax Cut Bill to Obama

Posted on Friday, December 17, 2010

WASHINGTON — Congress at midnight Thursday approved an $801 billion package of tax cuts and $57 billion for extended unemployment insurance. The vote sealed the first major deal between President Obama and Congressional Republicans as Democrats put aside their objections and bowed to the realignme...

IRS Audits Jump By 11 Percent; Wealthiest Targeted

Posted on Friday, December 17, 2010

WASHINGTON — The Internal Revenue Service is making it a bit riskier to cheat on your taxes. The tax agency increased the number of returns it audited by nearly 11 percent this year, statistics released Wednesday show. Wealthy taxpayers and big businesses were most likely to be targeted. The IRS a...

The Deal on Taxes

Posted on Friday, December 17, 2010

Adam Looney, Brookings The downtrend in debt is an important part of households' efforts to shore up their financial conditions in the wake of the excesses of the credit boom that precipitated the financial crisis. As I discussed in a presentation on household deleveraging (PDF), the reduction in...

Mortgage Interest Deduction - Issue Summary

Posted on Friday, December 17, 2010

What is the fundamental issue? Individuals are permitted to deduct mortgage interest paid on mortgage debt of up to $1 million. The deduction is available for interest on mortgages for a principal residence and one additional residence. The $1 million limitation represents the combined allowable...

Tax-cut package clears procedural hurdle in Senate

Posted on Tuesday, December 14, 2010

Republicans and Democrats joined forces in the Senate on Monday to deliver the most significant bipartisan vote since President Obama took office, advancing a plan to extend tax cuts for virtually every American and to boost the economic recovery. The procedural vote could be followed by final Sen...

Tax Deal With a Side of Bacon

Posted on Tuesday, December 14, 2010

Since House Democrats rejected the tax deal, partisans on both sides are festooning the bill with provisions that look suspiciously like earmarks. Since House Democrats rejected the tax compromise that President Obama and GOP leaders negotiated last week, there has been a mad scramble to renegotiate...

'Temporary' Tax Code Puts Nation in a Lasting Bind

Posted on Tuesday, December 14, 2010

WASHINGTON—Welcome to the world of the temporary tax code. In the late 1990s, there were typically fewer than a dozen tax provisions that had just a limited lease on life and needed to be renewed every year or so. Today there are 141. Now Congress, taking up a deal worked out between the Obama a...

Japan Will Cut Corporate Income Tax Rate

Posted on Tuesday, December 14, 2010

TOKYO — Japan will cut its corporate income tax rate by 5 percentage points in a bid to shore up its sluggish economy, Prime Minister Naoto Kan said here Monday evening. Companies have urged the government to lower the country’s effective corporate tax rate — which now stands at 40 percent, around...

Tax Breaks Bring Hope for Hiring

Posted on Tuesday, December 14, 2010

To many manufacturing companies, the tax cut proposal now being considered in Washington may be just enough to spur additional spending and hiring. At Yushin America, a Rhode Island company that makes and maintains robotic manufacturing equipment, executives say that the business tax breaks would...

Tax-Cut Package Passes Crucial Senate Test

Posted on Tuesday, December 14, 2010

WASHINGTON — With robust bipartisan support, the Senate on Monday advanced the tax-cut package negotiated by President Obama and Congressional Republicans, increasing pressure on House Democrats to set aside their opposition. The vote, to cut off debate and end any filibuster, assured that the...

Tax-Cut Plan Eases Pressure On Bernanke And Fed

Posted on Tuesday, December 14, 2010

WASHINGTON — The Federal Reserve last month absorbed a wave of criticism for announcing it will buy $600 billion in Treasury bonds to try to revitalize the economy. It won't help, critics said. So when Fed officials meet Tuesday, they're likely to feel a weight has been lifted: The White House an...

Tax-cut package clears procedural hurdle in Senate

Posted on Tuesday, December 14, 2010

Republicans and Democrats joined forces in the Senate on Monday to deliver the most significant bipartisan vote since President Obama took office, advancing a plan to extend tax cuts for virtually every American and to boost the economic recovery. The procedural vote could be followed by final Sen...

House Dems tinkering with estate tax

Posted on Tuesday, December 14, 2010

House Democratic efforts to change the tax deal struck by President Obama and congressional Republicans are focusing on an amendment to the estate tax provision, according to senior party sources familiar with a Monday leadership meeting. But it's not clear that the proposed amendment, which...

Huge Senate majority votes to advance $858B tax package

Posted on Tuesday, December 14, 2010

President Obama's $858 billion tax package won a huge bipartisan majority in the Senate Monday evening, setting it up for a contentious debate in the House. In a 83-15 vote, the Senate quashed a filibuster by Sen. Bernie Sanders (I-Va.). Fifteen lawmakers voted against it, including five Repub...

Washington Post-ABC News poll finds broad bipartisan support for tax package

Posted on Tuesday, December 14, 2010

About seven in 10 Americans back the tax deal negotiated last week by President Obama and congressional Republicans, according to a new Washington Post-ABC News poll. The high bipartisan support for the package masks more tepid public approval for some of the main components of the agreement that ...

Moody's: U.S. Credit Rating Outlook Could Be Affected By Tax Package

Posted on Tuesday, December 14, 2010

NEW YORK - Moody's warned on Monday that it could move a step closer to cutting the U.S. Aaa rating if President Barack Obama's tax and unemployment benefit package becomes law. The plan agreed to by President Barack Obama and Republican leaders last week could push up debt levels, increasing the l...

What’s Wrong With Cutting Taxes?

Posted on Tuesday, December 14, 2010

Simon Johnson, the former chief economist at the International Monetary Fund, is the co-author of “13 Bankers.” President Obama and Congressional Republicans have reached a deal that would cut taxes “for all Americans.” Their argument is that this package will stimulate the economy, create jobs a...

Working-Family Tax Relief in Tax-Cut Deal Would Keep 2 Million People Above Poverty Line

Posted on Monday, December 13, 2010

Three major tax benefits for middle- and lower-income working Americans in the tax-cut deal between President Obama and Republican leaders (that go beyond extending the Bush tax cuts) would keep more than 2 million Americans above the poverty line and reduce the severity of poverty for 19 million mo...

In Tax Benefits to the Middle, Political Lift for Obama

Posted on Monday, December 13, 2010

WASHINGTON — With the Senate poised to hold a key vote on Monday on the tax cut deal between President Obama and Republicans, the political jousting has focused on what the agreement does for the wealthy by extending all of the Bush-era tax rates, and for the unemployed, by continuing jobless aid. ...

Larry Summers: If Tax Deal Goes Down There's A 'Significant Risk' Of A Double Dip Recession

Posted on Thursday, December 09, 2010

Senior White House officials significantly raised the stakes on congressional Democrats in their efforts to get a deal passed on the Bush tax cuts, warning on Wednesday that inaction would "significantly increase the risk" of a double dip recession. It wasn't quite the metaphorical flare of mushro...

Tax Cut Deal Not Most Effective Way Of Creating Jobs, Say Leading Economists

Posted on Thursday, December 09, 2010

The new tax cut deal in Washington would curb unemployment at a far higher cost than if the government were to create jobs directly, according to an analysis of its potential effects. What's more, predictions about the program's benefit to the economy differ little from predictions made before the ...

Mortgage Interest Tax Credt/NAR Letter

Posted on Wednesday, December 08, 2010

Ron Phipps ABR, CRS, GRI, GREEN, e-PRO President Dale A. Stinton CAE, CPA, CMA, RCE Chief Executive Officer GOVERNMENT AFFAIRS DIVISION Jerry Giovaniello, Senior Vice President Gary Weaver, Vice President Joe Ventrone, Vice President Jamie Gregory, Deputy Chief Lobbyist 500 New Jersey Ave...

Panel Unveils Proposal Suggesting Limits on Mortgage Tax Deductions

Posted on Friday, December 03, 2010

In early November, co-chairs of the National Commission on Fiscal Responsibility and Reform released a draft of a proposal that suggested significantly reducing mortgage interest tax deductions. The final proposal was released Wednesday amid much controversy. The details of the draft have been ci...

House Passes Tax Cuts For Middle Class 234-188

Posted on Friday, December 03, 2010

WASHINGTON (AP) -- The House has passed a bill to extend middle-class tax cuts while letting those for the wealthy expire, even as talks continue on extending the cuts for everyone. The bill is a political maneuver to satisfy Democratic supporters who oppose extending tax cuts for the wealthy. Ev...

Obama: Not Extending Middle Class Tax Cuts Could Hurt Growth

Posted on Wednesday, December 01, 2010

KOKOMO, Indiana: President Barack Obama said on Tuesday the United States must extend tax cuts for the middle class but could not afford to do so for the wealthy, laying out his position before next week's meeting on the issue with Republicans. Obama, who also told hard-hit Americans the U.S. econo...

Dear Mr. President, Please Don't Extend the Bush Tax Cuts for the Wealthiest Americans

Posted on Wednesday, November 17, 2010

There have been (admittedly unclear) indications from your administration that you may accede to the Republicans’ demand to extend the Bush tax cuts for everyone. I urge you not to do this. The question is: Is it better to extend the tax cuts for everyone or for no one? The answer is to extend them...

Mortgage Interest Deduction

Posted on Wednesday, November 17, 2010

Members of the commission created by President Obama to shrink the federal budget deficit published a proposal this week that would significantly scale back the mortgage interest tax deduction. The co-chairs of the National Commission on Fiscal Responsibility and Reform, Alan Simpson, a former Repu...

First First Time Buyer Tax Credit

Posted on Friday, September 10, 2010

Recipients of First Tax Credit to Begin Payback Borrowers who took advantage of the original 2008 home buyer tax credit must begin paying the credit back this year. The Inspector General for Tax Administration (TIGTA) says 950,000 owe money. The required payments are amortized over 15 years – $...

Bush Tax Cuts Expiring @ Year End

Posted on Friday, August 20, 2010

The Bush tax cuts took few points off of incomes under $250,000 and loosened rules governing IRAs, in particular raising the annual contribution limit from $2,000 to $5,000. Bush's cuts also increased minimum income levels on the Alternative Minimum Tax (AMT), rules designed to prevent too many d...

Extention of Leasehold Improvement Depreciation/FIRPAT Reform

Posted on Monday, March 15, 2010

The Senate approved a $140 billion measure that includes $31 billion in tax "extenders," including a provisions to extend 15-year leasehold improvement depreciation and brownfields expensing. 15-year depreciation for leasehold, or tenant, improvements will help free up capital for job creation...

Acting Ways and Means Chairman Continues to Press for Carried Interest Changes

Posted on Monday, March 08, 2010

Under current law, the carried interests of general partners in real estate partnerships are taxed at capital gains rates (currently 15%). In 2008 and 2009, the House passed legislation that changed the rule so that carried interests in real estate partnerships (and many other investment arrangeme...

Mortgage Interest Deduction

Posted on Tuesday, February 23, 2010

On February 1, President Obama released his budget proposal for 2011. Consistent with its proposed FY 2010 budget, the Administration's again has recommended limiting the value of the mortgage interest deduction (MID) for upper income taxpayers by, in effect, converting the deduction to a 28% tax cr...

The Mortgage Forgiveness Debt Relief Act of 2007

Posted on Wednesday, April 15, 2009

This information comes to you directly from the horses mouth (the IRS website).... The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgi...

Losses on Foreclosures, Short Sales, Deed in Lieu, etc

Posted on

Most sellers who have only owned their properties for a few years will almost certainly incur a loss on that real estate. Prior to now in situations of cancellation or forgiveness of debt by lenders, the borrower usually had reportable income, though there were some exceptions. Normally the bank ...

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