The IREM Legislative Division sends a Call-to-Action memo to all members when there is a time-sensitive policy issue that needs immediate attention. A Call-to-Action urges members to help shape the outcome of pending legislation by sending feedback directly to federal and/or state legislative and regulatory agencies. Sign up to join the Call-to-Action network today!

Call-to-Action: Oppose Tax Increase on Commercial Real Estate

House Ways and Means Chairman Charlie Rangel (D-NY) is moving forward with legislation that would make major changes to the tax structure. The bill proposes a massive tax increase for real estate partnerships, raising the tax rate on "carried interest" from 15% to 35%. This legislation would significantly impact commercial real estate projects, most of which are organized in partnerships.

Why this legislation is detrimental to real estate practitioners:

• Drives investors to put their money elsewhere such as stocks with much more favorable tax treatment
• Diminishes the value and/or put many partnership out of business because the capital would not be there to facilitate them
• Creates a disincentive to investing in real estate since many would no longer earn a reasonable profit
• Stifles growth in a part of our economy which has become increasingly important over the last several years due to manufacturing, call centers, and other key industries moving offshore
• Punishes partners involved with prior arranged transactions by causing a totally different economic result than all partners agreed with in advance
• Fails to recognize that real estate investors are involved in their investments daily, while hedge fund managers are not involved daily in their investments.

Contact your U.S. Senators and Representative informing them of your concerns and urge them to oppose the carried interest provision. How to contact your legislators:

1. Look up your Members of Congress and their contact information at the following website: http://capwiz.com/cl/home/.
2. Introduce yourself in a sentence or two. For instance: I am a constituent and a commercial real estate manager who manages a portfolio of …
3. Use the bullets (above) on how higher taxes on carried interests would be detrimental to commercial real estate to argue your point. You are encouraged to add your own examples.
4. If you will be faxing your legislators, print your letter on your company letterhead.
5. After contacting your legislators, please notify the IREM Legislative Liaison, Molly Czepiel, by email at mczepiel@irem.org
   

Make your voices heard! Act immediately by contacting your legislators.

If you have any questions or would like to request additional information please contact Molly Czepiel, IREM Legislative Liaison, at (312) 329-6021 or email mczepiel@irem.org.