The following are some issues affecting real estate that we feel would be of interest to you.
House Ways and Means Committee Chairman Bill Archer (R-TX) has recommended tax legislation to reduce capital gains for home sales, along with recommending a reduction in 1099-S reporting. Chairman Archer is also proposing that no 1099-S information reporting would be required for sale of property by individuals when the sale price is under $250,000.00, and by those who file jointly when the amount is under $500,000.00, if the seller certifies a principal residence is involved. Tax legislation is expected to be considered in the Senate this summer.
After simplification provisions by the Administration threatened many Section 1031 "like-kind" real estate exchanges through possible tax policy legislative changes taking shape on Capitol Hill, members of the House Ways and Means Committee, and others, agreed that no changes should be made in the existing "like-kind" law.
Leaving present law as is will continue to mean "like-kind" transactions can be used without the burden of unnecessary capital gains taxes on exchanges. Modifications proposed by the Administration would have limited the practice of exchanges of farms, ranches and small business real estate, along with commercial, residential, and other types of property.
We will continue our efforts to keep you updated on matters coming before Congress.