Tax Reform

Real Estate Industry Unified Against White House Tax Proposals

Filed in Advocacy, Housing Affordability, Tax Reform by on May 24, 2021 4 Comments
Real Estate Industry Unified Against White House Tax Proposals

NAHB, along with the major real estate trade associations representing both the commercial and residential real estate sectors, pushed back in identical joint statements to the House Ways and Means Committee and the Senate Finance Committee on tax increases proposed as part of the Biden administration’s push on infrastructure.

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President Biden to Announce $1.5 Trillion Tax Plan

Filed in Advocacy, Housing Affordability, Tax Reform by on April 28, 2021 0 Comments
President Biden to Announce $1.5 Trillion Tax Plan

President Biden is expected to outline tonight in an address to a joint session of Congress his “American Families Plan,” which includes significant tax changes that would harm real estate. 

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Treasury, IRS Extend Federal Tax Filing Deadline Until May 17

Filed in Tax Reform by on March 17, 2021 0 Comments
Treasury, IRS Extend Federal Tax Filing Deadline Until May 17

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

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IRS Releases Guidance on Claiming Employee Retention Credit with PPP Loan

Filed in Economics, Tax Reform by on March 2, 2021 0 Comments
IRS Releases Guidance on Claiming Employee Retention Credit with PPP Loan

The IRS released guidance this week for taxpayers claiming the employee retention credit for tax year 2020. The IRS plans to release additional guidance in the near future for claims arising during 2021, including changes made to the employee retention credit for 2021.

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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.

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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.”

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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.

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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.

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Housing in Opportunity Zones

Filed in Land Development, Tax Reform by on July 17, 2020 1 Comment
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.

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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.

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