Capital Gains Tax Hikes Loom; Proposition 13 Tax At Risk
February 26, 2009
Obama’s budget, slated to take effect in fiscal year 2011, is expected to repeal old tax cuts and institute new ones in an effort to close the massive deficit. Part of his plans include taking the top tax bracket to 39.6% (from 35%), and also to raise taxes on capital gains and dividends to 20%, up from the current 15%.
An increase in capital gains and dividends would weigh heavily on real estate investors. In addition to this, as government works to close deficit gaps, there is further talk of tax hikes in California. In some circles, talk of repealing Prop 13 protection for commercial property is taking place. That would have a dramatic impact on property owners, as well as tenants. Since it is an important subject, we’ll make a separate post on how tenant’s can take steps to shield themselves from taking a bath if Proposition 13 were to be successfully repealed.
Similar Posts:
- Proposition 13, Property Taxes, and Tenants
- Efforts To Raise Commercial Property Taxes Gaining
- Obama Has 10 Months
- Obama Proposes Taxing Carried Interests (Promotes) as Ordinary Income
- Legislative Update: Congress Looking To Raise Carried Interest Tax
Tags: Capital Gains, Commercial Real Estate Investing, Obama, Proposition 13, Taxes
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- Pingback by The End of Long-Term Gains? « RetailChatr on February 26, 2009 @ 4:54 pm
Raising Capital Gain tax is not going to solve any issues or encourage real estate investors. A cut should have been in order, nevertheless, the government is broke and where else can you get money but raise taxes. 20% used to be what non us citizens paid on capital gain when buying a property in the US. I work closely with many realtors who are just amazed at the number of obstacles they have to jump to close a deal lately. From mortgage lenders who really don’t want to give up any money to technicalities regarding commercial space being mixed with residential and now a high capital gain tax.