Stay on Top of Legislation that Affects You, Your Business, and the Industry with the CCIM Institute Legislative Bulletin

CCIM INSTITUTE CALL TO ACTION:

OPPOSE TAX INCREASE ON COMMERCIAL REAL ESTATE

House Ways and Means Chairman Charlie Rangel (D-NY) is moving forward with
legislation that would make major changes to the tax structure.  The bill
proposes a massive tax increase for real estate partnerships, raising the
tax rate on "carried interest" from 15% to 35%.  This legislation would
significantly impact commercial real estate projects, most of which are
organized in partnerships. 


Why this legislation is detrimental to real estate practitioners:

.         Drives investors to put their money elsewhere such as stocks with
much more favorable tax treatment

.         Diminishes the value and/or put many partnership out of business
because the capital would not be there to facilitate them

.         Creates a disincentive to investing in real estate since many
would no longer earn a reasonable profit

.         Stifles growth in a part of our economy which has become
increasingly important over the last several years due to manufacturing,
call centers, and other key industries moving offshore

.         Punishes partners involved with prior arranged transactions by
causing a totally different economic result than all partners agreed with in
advance

.         Fails to recognize that real estate investors are involved in
their investments daily, while hedge fund managers are not involved daily in
their investments.


Contact your U.S. Senators and Representative informing them of your
concerns and urge them to oppose the carried interest provision.  How to
contact your legislators:

1.      Look up your Members of Congress and their contact information at
the following website: http://capwiz.com/cl/home/

2.      Introduce yourself in a sentence or two.  For instance: I am a
constituent and a commercial broker who. 

3.      Use the bullets (above) on how higher taxes on carried interests
would be detrimental to commercial real estate to argue your point.  You are
encouraged to add your own examples.   

4.      If you will be faxing your legislators, print your letter on your
company letterhead.  

5.      After contacting your legislators, please notify the CCIM Institute
Legislative Liaison, Vijay Yadlapati, by email at
<mailto:vyadlapati@cciminstitute.com> vyadlapati@cciminstitute.com 


For more information on the issue read the CCIM Institute Statement of
Policy on Carried Interests by clicking on the following direct link:

 <http://www.ccim.com/members/govaffairs/pdf/carried_interest_SOP.pdf>
http://www.ccim.com/members/govaffairs/pdf/carried_interest_SOP.pdf

Make your voices heard!  Act immediately by contacting your legislators.

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