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2010 IREM and CCIM capitol hill visit day.

AT PRESS TIME, THE 2010 CAPITOL HILL VISIT DAY WAS JUST AROUND THE CORNER, to be held in conjunction with the IREM Leadership and Legislative Summit beginning May 5, 2010. During this exciting and educational event, IREM and CCIM Institute members were scheduled to meet with Congressional members and staff to discuss important issues that affect the real estate industry. Issues for discussion included:

* Increasing short-term business lending, moderate term capital improvement loans and longer term financing or refinancing of commercial property. Having a proper "commercial property toolbox of options" is a great way to address today's needs in the area of capital markets.

* Accelerating depreciation of properties to generate commercial property cash flow. By shortening the recovery period and providing passive loss relief at the same time, a very important incentive would be provided to those owning/managing commercial real estate.

* Providing additional financing through the use of funds from credit unions. Existing law limits credit union business lending at 12.25 percent of total assets. By moving the limit to 25 percent of total assets--a current proposal in the U.S. Congress, additional funds could be provided for commercial property lending.

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* Providing a mortgage insurance program for commercial debt. This concept would support insurance from the government or private sector that would cover the difference between the current value and the debt service amount which could free up capital for other purposes.

* Extending federal tax codes, along with new proposals that would ultimately incentivize investors' participation in the real estate industry and thus create jobs and promote economic stability.

* Keeping capital gains rates at the 15 percent level to encourage investors to participate in the commercial real estate market. The loss of capital gains treatment for real estate investment ownership would turn long established buy-and-hold procedures upside down.

* Re-proposing or extending other current or past tax incentives, including the 15 year leasehold improvement depreciation and the extension of the current 50 percent bonus depreciation, which allows property owners to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance. The current $1.80 per square foot energy tax credit for commercial property owners who achieve 50 percent energy savings through energy retrofits is another incentive that needs to be extended.

* Discussing legislative proposals that would change existing law so that income generated from carried interests would be taxed at a rate of ordinary income (at 35 percent or more), as opposed to the current capital gains rate (15 percent). Most general partners with existing carried interests will be penalized under this proposal and be devastating to these businesses.
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Title Annotation:IN SESSION
Comment:2010 IREM and CCIM capitol hill visit day.(IN SESSION)
Publication:Journal of Property Management
Geographic Code:1USA
Date:May 1, 2010
Words:438
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