Tag Archive for ‘tax’

New Study Highlights Benefits of the Affordable Housing Credit

A new study of California affordable housing developments provides important findings concerning the role and benefits of the Low-Income Housing Tax Credit (LIHTC). The affordable housing credit ensures a supply of equity financing for the development of needed rental housing. The report was prepared for the California Department of Housing and Community Development, the California Tax Credit Allocation Committee, the… Read More ›

The Economic Impact of the Affordable Housing Credit

In addition to ensuring the supply of affordable rental housing, the Low-Income Housing Tax Credit (LIHTC) supports jobs and provides benefits to the economy. Using the NAHB economic impact model of home building, revised industry estimates reveal that the LIHTC program supports almost 96,000 jobs in a typical year. NAHB recently updated its economic impact model of home building, which indicate that… Read More ›

State and Local Tax Receipts Continue to Improve

Property taxes are the largest single source of state and local tax receipts, according to NAHB tabulations of the Census Bureau’s quarterly tax data. At 40.3%, property taxes represent a significantly larger share than the next largest sources: individual income taxes (28.1%) and sales taxes (27.2%). From the second quarter of 2013 through the end of the first quarter of… Read More ›

Working at Home: Who Claims the Home Office Deduction?

Often cited as a “red flag” for audits, the home office deduction is in fact a legitimate business deduction with particular importance for certain careers and small business owners. Moreover – from the housing economics perspective – IRS data concerning the deduction, along with Census data reporting who works at home, can shed light on an important and growing role… Read More ›

Tax Policy and Housing

Tax policy plays a key role in shaping housing demand, determining business conditions and deterring or fostering economic growth. Housing-related tax policy is of such significant importance that it has been selected as a primary issue for NAHB’s 2014 legislative conference, “Bringing Housing Home,” which takes place March 17-21 as home builders and other members of the residential construction industry meet federal lawmakers. As… Read More ›

Tax Reform Discussion Draft: What the Housing Industry Needs to Know

Chairman Dave Camp of the House Ways and Means Committee published a discussion draft of a comprehensive tax reform proposal on February 26th. The 979 page legislative draft adopts the policy strategy of broadening the tax base, while lowering income tax rates. These changes are approximately revenue neutral according to the Joint Committee on Taxation. In practice, this approach means the elimination… Read More ›

Housing-Related Tax Rules That Expired at the End of 2013

At the end of 2013, a number of housing-related tax provisions expired. Collectively, these housing and other tax rules are part of a set of policies known as “tax extenders,” which have traditionally been extended every year or so. While there is growing support for extending most, if not all, of these provisions, a potential debate on comprehensive tax reform may delay any Congressional effort to extend… Read More ›

Senate Finance Staff Discussion Draft: Energy Tax Incentives

Last week saw the release of yet another discussion draft from the staff of the Senate Finance Committee concerning tax reform. Following draft proposals concerning depreciation/accounting and other business expenses (such as advertising), the most recent draft proposes changes to the tax code’s rules concerning energy production and energy-efficient improvements. Under the draft proposal, most existing energy tax incentives would be… Read More ›

Advertising Expenses – On the Tax Reform Radar

Comprehensive tax reform is guided by a simple formula that masks a complex process that produces winners and losers. The formula is broaden the base, lower the rates. This means increasing what most taxpayers report as taxable income, but taxing that larger number at a lower marginal tax rate. To broaden the base, tax policymakers must curtail or eliminate many… Read More ›