Printer Friendly

House expands passive-loss reform.

When the House Ways and Means Committee last week passed its version of the Clinton tax bill, they agreed to a passive-loss provision that is more liberal than that proposed by the president.

In his deficit-reduction plan, President Clinton supported allowing those active in rental real estate to use the losses incurred to offset the income realized from that activity. Having made changes, House lawmakers will be sending to the Senate a tax bill that enables those active in residential real estate to use those losses to offset all business income.

The tax reform act of 1986 deemed all residential real estate passive and, therefore, prohibited the use of losses to offset income. The industry has since then been struggling for some measure of relief. In one of the last moves of his administration, former President Bush vetoed a hill (H.R. 11) containing a broad passive-loss reform measure.

"We're a step closer," said Cary Brazeman, spokesperson for the National Realty Committee. "We still have many steps ago."

This provision of the tax hill, Brazeman said, is necessary to put real estate on the "same footing" as members of other industries.

If passed, investors and operators will have to meet a minimum requirement of time devoted or money investment.
COPYRIGHT 1993 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:House Committee on Ways and Means legislation on real estate tax
Author:Fitzgerald, Therese
Publication:Real Estate Weekly
Date:May 19, 1993
Previous Article:UNICEF delays move decision.
Next Article:Co-op/condo reps find concerned City Council.

Related Articles
Passive loss change nears.
Senate to vote on tax measures.
Passive-loss reform bill heads for Bush's desk.
'93 may be year for legislative strides.
Industry victor in budget plan.
NJ-NAIOP: meeting the demands of the 90's.
Tax reform work begins.
REBNY records vital victories in 1993.
Paired-share REITs: flourish or perish?
City's housing tax reform plan gets mixed reaction.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters