Coalition Letter to Congress Re HR 1068 The Carried Interest Fairness Act

On June 16 NAR signed on to a real estate industry coalition letter to Congress. The letter urges Congress to preserve longstanding tax law as it relates to partnerships and profits interests (carried interest).

 

Well-intentioned but misguided legislation like the Carried Interest Fairness Act (H.R. 1068), and the President’s budget proposal to tax carried interests as ordinary income, would result in an enormous tax increase on countless Americans who use partnerships to develop, own, and operate real estate. These sweeping changes, if enacted, would discourage individuals from pursuing their entrepreneurial vision, tax the sweat equity that makes real estate more productive and useful, and slow economic growth. The results would be particularly harmful to industries that seek to build a business or asset with lasting value over an extended time horizon.