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NAHB opposes tax increase provisions in ‘tax relief’ bill

House passes bill extending mortgage-related tax deductions, exclusions

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The National Association of Home Builders is opposing a congressional bill, which passed the House of Representatives on Monday, that it said could have a "significant negative impact on the multifamily housing industry." While expressing support for some of the aims of HR 3996, dubbed the Temporary Tax Relief Act, the builders' group said in a statement Friday it opposes a provision raising taxes on capital gain income generated by carried interest held by general partners in real estate investment partnerships. This tax increase, which the group said could raise the tax rate for capital-gains income related to some types of real estate partnerships from 15 percent to 35 percent, "would disrupt the investment relationship between developers and investors," according to a statement by Brian Catalde, NAHB president. "NAHB shares the goals embodied in HR 3996 to ... help struggling families keep their homes," Catalde said. "However, the carried interest proposal to offset the...