Carried interest and estate taxes.
The FY10 Green Book also proposes to permanently freeze the estate tax at the levels that will be in place in 2009 (a $3.5 million per individual exemption and a 45 percent maximum tax rate). Additionally, it includes new proposals changing the valuation methods that may be used for property transferred via an estate.
In response to a GAO report that more than half of individual taxpayers receiving rental income did not properly report it, the Green Book proposes to expand reporting requirements for real-estate owners who receive rental income but whose real-estate activities do not rise to the level to be considered a trade or business. The proposal is not expected to materially affect professional apartment firms, however.