Tax hike could squeeze real estate

July 30, 2007 12:00AM

A House bill that would double the tax rate on companies with partnership structures could end up costing commercial and residential real estate companies a lot of money. Although the legislation is aimed at private equity firms and hedge funds, real estate partnerships would not be exempt from the tax hike. The bill would require managers of privately held real estate companies to pay up to 35 percent in taxes on their profits rather than the long-term capital gains rate of 15 percent. “This bill is so inappropriate it defies words,” said Francis Greenburger, the chairman of Time Equities. “Being taxed as ordinary income could eliminate our business.” more [Sun]

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