Help Prevent More Real Estate Taxes!
Congress is at it again. They are working towards changing the tax code to have negative impacts on owning real estate. If you have a rental you may want to pay attention to this:
1) Congress is proposing that all owners of rental properties be required to file IRS 1099 forms on service providers such as electricians, plumbers, and landscapers. This arduous provision would apply to even the smallest landlord, as anyone who receives rental income will be required to comply with the new tax provisions if they pay any contractor $600 or more in any given year.
2) Congress is considering taxing “carried interest” at ordinary income rates instead of capital gains. Carried interest rules govern how general partners in real estate investments pay taxes when an investment is sold. By increasing the tax burden on these real estate partnerships, the proposal would make real estate a less attractive investment. For the first time, this proposal would prevent a particular type of real estate investment gain from qualifying for capital gains.
You should contact Ron Wyden, Jeff Merkley and Earl Blumenauer and let your opinion get voiced today!