Wednesday, February 23, 2011

President’s Budget Reignites Carried Interest Debate

BOMA San Francisco Members:

President Obama’s budget for FY2012 once again includes a tax increase on carried interest in its revenue estimates. The House was able to pass legislation in the 111th Congress that recharacterized the share of the profits realized by the general partner at the end of a real estate deal as ordinary income, rather than at as a capital gain; however, the Senate failed three times to do the same. With a Republican–controlled House and an even slimmer Democratic majority in the Senate, it appears as though it will prove even more difficult, if not unlikely, for such a tax increase to be considered in the 112th. That being said, BOMA International will continue to be vigilant on this important industry issue.

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