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Carried interest and estate taxes.

The Obama administration released details of their FY 2010 revenue proposals May 11 in a document commonly referred to as the "Green Book." As expected, the FY10 Green Book includes a plan to change the taxation of carried interest by applying ordinary income taxes to the "carry" or "promote" earned by the general partner in a real estate partnership arrangement. This proposal is similar to pending legislation (HR 1935) that NAA/NMHC have been actively opposing for months.

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.
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Title Annotation:Political Insider: Clean Water Act
Publication:Units
Date:Jun 1, 2009
Words:198
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