Tax Bill Preserves Reduced Capital Gains Rate, But Not Depreciation Schedule
While the recently approved “Tax Relief Extension Reconciliation Act of 2005” does extend a reduced tax rate on capital gains and dividends, the bill was stripped of other provisions that would have favored the real estate industry, according to BOMA International.
While the recently approved “Tax Relief Extension Reconciliation Act of 2005” does extend a reduced tax rate on capital gains and dividends, the bill was stripped of other provisions that would have favored the real estate industry, according to BOMA International.
Preserved in the bill was a 15 percent tax rate on capital gains and dividends. But removed from the bill was the 15-year depreciation schedule on leasehold improvements that were initially included, BOMA says, along with a deduction for brownfields.
The two items were removed from the final conference report in order to include a one-year patch for the alternative minimum tax (AMT), says BOMA, which supported including the two items in the bill.
The bill passed the House May 10 and the Senate May 11. It was signed by President Bush May 17, BOMA says.
Related Topics:
