Media

Senate Finance Committee Ranking Member Ron Wyden (D-OR) yesterday introduced legislation to fundamentally alter the longstanding tax treatment of a profits interest in a real estate partnership. The Wyden proposal (detailed summary of the legislation and one-pager) would depart dramatically from prior carried interest legislation by taxing partners before any capital gain or even rental income is generated by the partnership. For example, it would give rise to large amounts of taxable (but phantom) income for a general partner with a profits interest during the pre-construction and development phase of a real estate project.

New York’s highest court issued a significant decision on March 27 regarding the governance, operation and dissolution of businesses structured as general partnerships; the value of “goodwill” that can inure to real estate assets; and the discounts that apply when valuing the stake of an investor with only a minority position in an enterprise.

House and Senate GOP leaders signaled this week they intend to pursue legislation that would make permanent the individual tax provisions enacted as part of the Tax Cuts and Jobs Act (P.L. 115-97) enacted last December.

Legislative language that could affect the allowable heights of buildings near airports passed the House today (393-13) as part of a bill ( H.R. 4 ) extending authorization of the Federal Aviation Administration (FAA) for five years.

House Financial Services Committee Chairwoman Maxine Waters (D-CA) released draft legislation calling for major investment in public and affordable housing before an April 30 hearing on "Assessing the Infrastructure Needs of America's Housing Stock."

A broad coalition representing rural and urban stakeholder groups submitted principles today to the Senate and House Judiciary committees on strengthening and reforming the EB-5 investment visa program, which is scheduled to expire on September 30, 2019.

U.S. Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) yesterday announced the formation of several bipartisan taskforces to examine and help permanently resolve the fate of 42 expired and expiring tax provisions.

Commercial real estate executives expressed increased optimism about real estate markets and overall economic conditions, according to this week's Real Estate Roundtable 2019 Q2 Sentiment Index.

The Roundtable's Q2 2018 Economic Sentiment Index released yesterday shows that as plentiful financing and equity continue to drive commercial real estate investment activity, industry leaders continue to see balanced market fundamentals, despite rising costs of construction and an uncertain outlook for markets in 2019.

As landmark tax reform enacted last December begins to reverberate through the economy, economists, Congress and industry experts are starting to assess its impact on economic investment and commercial real estate.

A Tax Foundation report released this week urges policymaker to correct a technical drafting error regarding cost recovery for qualified improvement property (QIP) that was included in the tax overhaul legislation enacted last year. The unintentional drafting mistake has resulted in a longer cost recovery period for qualified nonresidential interior improvements – a category that previously covered leasehold improvements, retail improvements, and new restaurant construction.

Robust international travel helps power economic growth and commercial real estate through tourism dollars directly spent at U.S. hotels, resorts, stores, home purchases, attraction, and investment properties. That is the message to policymakers from the multi-industry VisitU.S. Coalition, which aims to safely and securely welcome more overseas travelers to the U.S. – who stay an average of 18 nights and spend approximately $4,360 at hotels, stores, restaurants and attraction properties on business and leisure trips.

With Democrats now in control of the House of Representatives, key congressional committee chairs this week announced their policy agendas and appointed additional members.

The 116th Congress convened last week with Democrats in control of the House for the first time in eight years as Nancy Pelosi (D-CA) was reelected House Speaker. Among the new leadership is a fresh slate of committee chairs who will address issues of importance to real estate in the areas of tax; capital and credit; energy; infrastructure; homeland security and other policy areas.

A multi-industry travel and tourism coalition that includes The Real Estate Roundtable submitted formal comments on May 29 urging the State Department to withdraw an "enhanced vetting" proposal for visitors traveling to the U.S. – a dramatic expansion of information collection that could further reduce the downward trend of in-bound tourism and its significant economic benefits. The Roundtable is also part of the VisitUS Coalition , which expressed concerns about the proposal in April.

Congressional lawmakers and industry leaders discussed national policies affecting commercial real estate this week during The Real Estate Roundtable's 2018 Annual Meeting, where Debra A. Cafaro (Chairman & CEO, Ventas, Inc.) was elected to a three-year term as Roundtable Chair.

The Roundtable and 28 other real estate industry organizations – representing more than 10 million jobs – yesterday launched Careers Building Communities, a website highlighting diverse career paths within the real estate sector. The public policy area of the site links to Roundtable resources.

House Ways and Means Committee Chairman Kevin Brady (R-TX) on July 24 outlined a proposed second round of tax cuts to House Republicans, who hope to vote on “Tax Reform 2.0” before the midterm elections.

With millions of workforce and low-income Americans facing a lack of affordable housing, a group of nine bipartisan Senators recently introduced legislation that would create a task force focused on policy recommendations to address the nation's housing scarcity problem.

The Real Estate Roundtable’s latest quarterly Economic Sentiment Index reported commercial real estate industry executives continue to see balanced and stable market conditions for Q3, despite growing concerns that the market may be at peak pricing and could be nearing the end of its current cycle.