Tax Reform

Key Housing Provisions in $900 Billion Relief Bill Passed by Congress

Filed in Advocacy, Disaster Response, Tax Reform by on December 21, 2020 5 Comments
Key Housing Provisions in $900 Billion Relief Bill Passed by Congress

A $900 billion economic relief package approved by the House and Senate tonight includes key provisions that NAHB championed. The bill provides small businesses relief from burdensome loan forgiveness requirements, helps struggling renters and owners with dedicated rental assistance, strengthens the Low-Income Housing Tax Credit and assists HBAs that have largely been excluded from previous relief measures.

Continue Reading »

IRS Says Businesses with Forgiven PPP Loans Cannot Deduct Expenses

Filed in Disaster Response, Economics, Tax Reform by on November 19, 2020 10 Comments
IRS Says Businesses with Forgiven PPP Loans Cannot Deduct Expenses

Businesses that get their Paycheck Protection Program (PPP) loans forgiven will not qualify for some valuable deductions, according to IRS guidance that reiterates its position taken in April.  In addition, companies that have “a reasonable expectation that the government won’t require them to pay back the money can’t deduct the business expenses paid for by the loan.”

Continue Reading »

Forgivable PPP Loans May be Taxable in Some States

Filed in Economics, Tax Reform by on September 21, 2020 0 Comments
Forgivable PPP Loans May be Taxable in Some States

Businesses who received loans under the Payroll Protection Program (PPP) may be eligible to have that loan forgiven, which may result in unforeseen tax consequences.  The federal Internal Revenue Code generally treats forgiven debt as taxable income; fortunately, Congress has excluded forgiven PPP loans from federal taxable income. However, as noted in a recent blog post by the Small Business Administration, that income may still be treated as taxable by your state.

Continue Reading »

IRS Guidance on Payroll Tax Deferral Leaves Key Question Unanswered

Filed in Economics, Tax Reform by on September 8, 2020 2 Comments
IRS Guidance on Payroll Tax Deferral Leaves Key Question Unanswered

The Internal Revenue Service (IRS) recently released Notice 2020-65 implementing the Aug. 8 presidential memorandum instructing the Department of Treasury to use its statutory authority to permit employers to defer withholding and payment of the employee’s 6.2% social security tax.

Continue Reading »

Housing in Opportunity Zones

Filed in Land Development, Tax Reform by on July 17, 2020 0 Comments
Housing in Opportunity Zones

Opportunity Zones (OZs) are an economic development tool created by the federal government in the 2017 Tax Cuts and Jobs Act. Here are some examples of successful OZ projects across the country.

Continue Reading »

Final Opportunity Zone Regulations Provide Clarity but Add Complexity

Filed in Multifamily, Tax Reform by on February 4, 2020 0 Comments
Final Opportunity Zone Regulations Provide Clarity but Add Complexity

In late December, the Treasury Department and Internal Revenue Service released the final regulations on investing in qualified opportunity funds, which clarify many key issues regarding investments in opportunity zones and how to qualify for the associated tax benefits. NAHB has reviewed the final regulations and updated its frequently asked questions webpage to note key issues related to real estate investments.

Continue Reading »

House Approves Bill to Lift Caps on State and Local Tax Deduction

Filed in Advocacy, Tax Reform by on December 11, 2019 2 Comments
House Approves Bill to Lift Caps on State and Local Tax Deduction

The House Ways and Means Committee today approved the Restoring Tax Fairness for States and Localities Act, a bill to address concerns from higher-tax states regarding the state and local tax deduction limits.

Continue Reading »

Bipartisan Senate Bill Restores Tax-Exempt Status for Developers’ Sewer and Water Contributions

Filed in Advocacy, Tax Reform by on December 11, 2019 1 Comment
Bipartisan Senate Bill Restores Tax-Exempt Status for Developers’ Sewer and Water Contributions

Sens. Jeanne Shaheen (D-NH), Lisa Murkowski (R-AK) and Maggie Hassan (D-NH) introduced legislation to address an unintended consequence of the Tax Cuts and Jobs Act of 2017 that increased costs for some builders and developers.

Continue Reading »

IRS Updates Form for Opportunity Zone Filings

Filed in Multifamily, Tax Reform by on November 4, 2019 0 Comments
IRS Updates Form for Opportunity Zone Filings

The IRS has released a draft version of the updated Form 8996, which is required to be filed by all Qualified Opportunity Funds (QOFs). The IRS indicated earlier this year that it would further update this form, and it is likely a final version will be available prior to the end of the year.

Continue Reading »

White House Launches Opportunity Zones Website

Filed in Multifamily, Tax Reform by on October 1, 2019 0 Comments
White House Launches Opportunity Zones Website

The White House has announced a new website designed to serve as an information hub for the opportunity zones initiative established as part of the Tax Cuts and Jobs Act of 2017.

Continue Reading »