Tag Archive for ‘tax’

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 ›

Finance Chair Tax Reform Draft: Impacts for Builders and Multifamily

This week saw the release of a number of tax reform drafts from Senate Finance Committee Chairman Max Baucus.  Coming after drafts concerning international tax rules and tax administration, the final release of the week involved depreciation and accounting issues. A number of these proposals would have negative impacts for home building, multifamily, and real estate in general.  It should be… Read More ›

Land Value Tax: An Alternative to the Property Tax

An alternative to the local property tax, the land value tax offers certain benefits over the economically inefficient property tax. However, its novelty and legal and political challenges continue to make it an elusive option at this time. According to numerous polls, the most hated tax is the local property tax. Economists Marika Cabral and Caroline Hoxby argue that Americans… Read More ›