The staff of the Joint Committee on Taxation has released a report summarizing the various tax code breaks and incentives for residential real estate in advance of the upcoming House of Representatives Committee on Ways and Means public hearing entitled “Tax Reform and Residential Real Estate,” which is scheduled for Thursday, April 25, 2013 at 9:30 am. NH&RA member Bob Moss, from Boston Capital and the Housing Advisory Group, is scheduled to testify at the hearing.
The Committee report discusses several tax provisions for rental housing such as the low-income housing tax credit (LIHTC), the historic rehabilitation tax credit (HTC), tax-exempt bond financing, accelerated depreciation for rental housing, passive activity loss rules and other special rental real estate rules. The report sections covering LIHTC and HTC give a basic description of how each tax credit works and includes another section that details the number of credits claimed since 2001. The report suggests that rental real estate tax incentives including LIHTC, HTC and tax-exempt bonds may reduce the cost of renting relative to owning.
In addition, the paper goes over several homeownership tax incentives including but not limited to the home mortgage interest deduction, the real property tax deduction, the exclusion of gain from sales of a principal residence, tax-exempt bonds for owner-occupied housing, and more.
Click here to read the report.
