Explore the impact of real estate legislation proposals has been saved
Explore the impact of real estate legislation proposals
From Biden’s revenue proposals to taxable REIT subsidiary to FIRPTA
Proposed changes to the tax structure could affect the future of real estate. Learn more about the legislative proposals spanning tax rates for ordinary income and capital gains, foreign investment in real property (FIRPTA), real estate investment trusts (REIT), and more in our Real Estate Green Book, along with reports on the Build Back Better Act and Passthrough Reform.
- Real estate legislation under consideration
- Key real estate provisions to watch
- Get ahead of potential real estate legislation challenges
- Get in touch
- Join the conversation
Build Back Better Act
On September 10, 2021, House Ways and Means Committee Chairman Neal released budget reconciliation legislative recommendations relating to four subtitles: infrastructure financing (subtitle F), green energy (subtitle G), the social safety net (subtitle H), and prescription drug pricing (subtitle J), including a section-by-section summary. On September 13, an amendment was proposed to add legislative recommendations relating to funding priorities (subtitle I), including a section-by-section summary of this subtitle, in addition to the legislative text of the other subtitles, F, G, H, I, and J. All of these subtitles passed out of Committee.
The Joint Committee on Taxation has released a report and a score, and estimates that the changes to subtitles F, G, H, I, and J combined would raise approximately $871 billion in net revenue over 10 years. For highlights of the key provisions, potential impact, and proposed effective date, download our report.
On August 5, 2021, Senate Finance Committee Chairman Wyden introduced the Ending the Carried Interest Loophole Act, including a detailed summary and legislative text. In addition, on September 10, 2021, Wyden released a Passthrough Reform Discussion Draft, including a section-by-section summary and legislative text. Chairman Wyden estimated the draft proposals would raise at least $235.1 billion, but no Joint Committee of Taxation score has been released. For highlights of the key provisions, potential impact, and proposed effective date, download our report.
Real Estate Green Book
Professionals across the real estate industry are staying closely attuned to legislative proposals that could have a significant effect on the sector. Some of these policy changes are included in President Biden’s American Families Plan, such as revisions to the capital gains tax rate and ordinary income tax rate. Other proposed legislation includes provisions that would affect estate planning decisions, real estate investment trusts (REITs), and foreign investment (FIRPTA). For highlights of the key provisions, potential impact, and proposed effective date, download our Real Estate Green Book.
Key real estate provisions to watch
Provisions included in proposed legislation that could affect real estate include the following:
- Like-kind exchanges: Limit the deferral of gains from like-kind exchanges of real property
- Carried interest: Treat carried interest income as ordinary
- Capital gains rate: Increase tax rate on tax preferential income
- Ordinary income rate: Increase top marginal tax rate for individual and fiduciary taxpayers
Other specific legislation under consideration includes:
Get ahead of potential real estate legislation challenges
If you’d like to talk more about the proposed real estate legislation and what its changes mean for your organization, contact us to set up a conversation.