STATEMENT ON NEW TAX BILL ISSUED BY STAN ROSS, MANAGING PARTNER, KENNETH LEVENTHAL & CO.
STATEMENT ON NEW TAX BILL ISSUED BY STAN ROSS, MANAGING PARTNER, KENNETH LEVENTHAL & CO. LOS ANGELES, Oct. 8 /PRNewswire/ -- The following is a statement issued by Stan Ross, managing partner of Kenneth Leventhal & Co.: There are some technically complex provisions in the Tax Act passed by Congress today that could dramatically enhance the economy. Pension funds, which are major sources of capital, have been restricted in the amount and types of their investments in the past. The bill contains two important but little understood provisions that would relax rules on certain acquisitions and investments by pension funds, freeing tremendous amounts of capital and accelerating the economic recovery. One key provision could help accelerate the disposition of problem assets that are sitting in the hands of financial institutions by allowing pension funds more flexibility to buy these. In fact, the proposal specifically would permit the sale of property acquired from troubled financial institutions, the Resolution Trust Corp., or those that are under conservatorship or receivership without being subject to income tax. As a result, we should see significant increases in capital and financing of investment groups to acquire these assets. Another measure paves the way for pension funds to increase their investments in REITS (Real Estate Investment Trusts). Again, the result would be an increase in the liquification of assets in this country. When combined with the Enterprise Zone and IRA/new homebuyer downpayment provisions, the Tax Bill could have a positive impact on the real estate industry, the capital markets and the economy. Its fate is now in the hands of the president. -0- 10/8/92 /CONTACT: Stan Ross of Kenneth Leventhal & Co., 310-277-0880/ CO: Kenneth Leventhal & Co. ST: California IN: SU:
LS-JB -- LA038 -- 8158 10/08/92 21:11 EDT
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|Date:||Oct 8, 1992|
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