There is a current legislative proposal in Congress (and supported by the current administration) that would reclassify promoted interest (carried interest), currently treated as capital gains for tax purposes, as ordinary income. The bottom line effect would be an enormous tax increase on rental property owners and investors and disc...ourage real estate partnerships from investing in communities. The final legislation will be determined by a House/Senate Conference Committee that is debating the measure now. According to Jim Arbury, senior vice president for government affairs at the NMHC, "The most effective lobbying at this point would be for CAA members to make as many phone calls as possible to the district offices of Democrat congressmen and women. The district offices need to tell Washington that the phones are ringing off the hook." Arbury adds that the basic message should be, "Don't change the taxation of carried interest. This is a job killer and will lead to lower property values and a lower tax base. We already have enough unemployment without adding to it." Click the link below to find your Congressional representative and how to contact their district offices. http://www.govtrack.us/congress/findyourreps.xpd?state=AZ . (for your state change the state code at end of url e.g. AZ change to CA) More information on this issue (including a sample letter to Congress) can be found on the NMHC website by visiting www.nmhc.org/goto/CarriedInterest.
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