WASHINGTON – May 17, 2010 – Congress is considering changes to the tax code as a number of provisions expire in 2010. Two of these provisions would impact real estate.
In response, the National Association of Realtors® issued a Call to Action, asking all Realtor members to call their personal Senator and Representative, and ask him or her to vote “no” on the proposed changes.
The first proposed change would require owners of rental properties to file IRS 1099 forms for all contractors paid $600 or more in any given year. This provision would apply to even the smallest landlord.
In addition, Congress is considering taxing “carried interest” at ordinary income rates instead of capital gains rates. Carried interest rules govern the way general partners in real estate investments pay taxes when the investment is sold.
“The real estate industry is still very fragile and likely to remain so,” says Florida Realtors Vice President of Public Policy John Sebree. “Any new tax burdens on real estate owners will impair and delay further recovery. These proposals are ill advised, inopportune and potentially destructive. Please take action today.”??
NAR made it easy to contact lawmakers with a formatted email and automatic delivery system, which sends the email only to a member’s personal Senator and Representative.
To send an email click here or visit the Realtor Action Center: