Expiring Tax Rates
The multifamily industry is dominated by “pass-through” entities (e.g., sole proprietorships, LLCs, partnerships and S corporations) instead of publicly held corporations (e.g., C corporations). This means that a company’s taxable income is passed through to the equity owners, who pay taxes on their share of the income on their individual tax returns. Congress should continue to promote the use of flow-through entities and investment in multifamily housing by making permanent the tax rate reductions and the 20 percent qualified pass-through income deduction enacted as part of the Tax Cuts and Jobs Act. Failure to extend today's tax laws would result in a substantial tax increase and further exacerbate the nation's housing challenges.
Fact Sheet
More information on Tax Rates & 20 Percent Pass-through Deduction Extensions, in addition to the NMHC/NAA viewpoint.
Read More- What Apartment Firms Need to Know About the Federal 2023 Spending Bill
- Updated NMHC Analysis: How Will President Biden’s Build Back Better Framework Impact the Multifamily Industry?
- NMHC Voices Opposition to Reductions and Repeal of Pass-Through Deduction
- How Would Biden’s Tax Proposal Impact the Multifamily Industry?
- Congress Passes Tax Reform
