Tag: tax reform
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.
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.
What You Need to Know About IRS’ Updated Opportunity Zone Regulations
In April, the Treasury Department and IRS released a second set of proposed regulations related to the new opportunity zones tax incentive. NAHB has updated its resource page with a new FAQ outlining key points included in both sets of draft regulations.
NAHB Resources Available to Help Navigate Opportunity Zones
Established as part of the Tax Cuts and Jobs Act of 2017, opportunity zones provide tax incentives for investors with capital gains to invest in underserved areas affected by poverty and unemployment. However, as a new tax incentive, many building industry members are still unclear on how to take advantage of this incentive. Learn more about the resources available through NAHB.
Upcoming Webinars to Clarify New Tax Law
Still confused about the new tax law? Then take advantage of two upcoming opportunities to hear directly from the IRS about the changes made to the business tax code.
What You Need to Know About the 20% Pass-Through Deduction
The Tax Cuts and Jobs Act signed into law late last year created a new section of the tax code that provides a 20% deduction for “qualified business income” generated by pass-through entities such as LLCs, partnerships and S-corporations. The IRS published proposed regulations to provide clarity to the law and NAHB breaks down what it means.
Tax Reform and Net Operating Losses
For businesses, the deduction for net operating losses is now limited to 80% of taxable income (which is determined without regard to the new 20% pass-thru deduction). In other words, business owners may no longer use NOLs to reduce tax liability to zero.
Treasury, IRS to Release Regulations on SALT Workarounds
The Department of Treasury and Internal Revenue Service (IRS) have released Notice 2018-54, which announces their intention to propose regulations addressing state legislative proposals that create a workaround for the newly imposed limits to the state and local tax deduction. In plain language, the IRS is warning taxpayers that just because the state law permits them, it does not make the workaround deductible under federal tax law.
‘Qualified Business Income’ and You
One of the truly new aspects of the tax code signed into law by President Trump is the 20% deduction available to “pass-through” businesses (i.e. LLPs, LLCs, and S-corps). It was a centerpiece of the tax bill, and one which most small business owners have heard about. Nevertheless, it warrants a lot of explanation because it is a lot more complex than it sounds.
March 5 Webinar Helps Members Understand Impact of Tax Reform on Their Bottom Lines
NAHB is hosting a members-only webinar on March 5 to help you understand how recent changes in the tax code could impact your business.
