Once again the can has been kicked down the road. Last week’s compromise legislation may be mislabeled since there is little real relief and the whole issue of spending cuts has once again been kicked down the road, this time just 2 months away. The legislation does maintain Bush era tax cuts for a majority of earners, those earning less than $450,000. Payroll check will be lighter across the board though due to the end of the 2% reduction in social security payroll tax in place the past two years.
According to Randyl Drummer in an article in a CoStar Group News article, the legislation “resolves several issues of keen interest to CRE advocacy groups, including an extension of the tax provision that allows certain leasehold improvements to be depreciated over 15 years rather than 39 years. Further, the bill leaves in place current rules on the tax treatment of carried interest as capital gains that some observers feared would discourage investment activity.”