Recent moves in Congress and the White House seemed to close doors on tax benefits for commercial real estate. But while a new proposal from House Ways and Means Committee chair Richard Neal does mean higher taxes, it would also temper some potential pain.
"With the reconciliation markup process underway, one thing is certainly crystal clear at this point, tax rates are going up," Nicole DeRosa, senior tax manager at Wiss & Company, tells GlobeSt.com. "Long term capital gain rates are currently slated to increase from 20% to 25%, or 28.8% including [an additional] net investment income tax, which to some might see as a relief since the original proposal had indicated these rates would increase to ordinary rates for high earners."
Ordinary rates meaning a top 39.6% for individuals making more than $1 million a year that the Biden administration had proposed.
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