Real Estate Investment and Jobs Act of 2014

Tax Reform Promoted comprehensive approach to tax reform that avoids enacting reform for C corporations at the expense of flow-through entities. Support maintaining current law regarding: (1) the tax treatment of carried interest; (2) the full deductibility of business interest; (3) the Low-Income Housing Tax Credit and tax-exempt private activity housing bonds; (4) the permanent estate tax rules enacted in January 2013; (5) Section 1031 like-kind exchanges; (6) the 27.5-year depreciation period for multifamily buildings; (7) depreciation recapture; and (8) the deductibility of state and local real estate taxes. Finally, we favor: (1) loosening FIRPTA rules to incent foreign investment in U.S. real estate; and (2) expanding incentives for energy efficiency in commercial buildings (i.e., Internal Revenue Code Section 179D). H.R. 1, Tax Reform Act of 2014. Section 1001: Simplification of individual income tax rates. Section 1002: Deduction for adjusted net capital gain. Section 1405: Repeal of deduction for taxes not paid or accrued in a trade or business. Section 1502: Determination of net earnings from self employment. Section 3104: Reform of accelerated cost recovery system. Section 3113: Repeal of deduction for energy efficient commercial buildings. Section 3133: Repeal of like-kind exchanges. Section 3139: Depreciation recapture on gain from disposition of certain depreciable realty. Section 3204: Low-income housing tax credit. Section 3217: Repeal of new energy efficient home credit. Section 3431: Termination of private activity bonds. Section 3621: Ordinary income treatment in the case of partnership interest held in connection with performance of services. Senate Committee on Finance Chairman's Staff Discussion Draft to Reform Certain Business Provisions. Section 2: Repeal of Certain Specialized Expensing Provisions (i.e., Section 179D). Section 11: Pooled Asset Cost Recovery System and Depreciation of Real Property. Section 12: Rules Related to Treatment of Gains from Depreciable Property. Section 15: Repeal of Like-Kind Exchanges. Obama Administration's Fiscal Year 2015 Budget Revenue Proposal to Modify Like-Kind Exchange Rules for Real Property. Also, asked that the Obama Administration not include this proposal in its forthcoming FY 2016 Budget. Expiring Tax Provisions H.R. 5771, Tax Increase Prevention Act of 2014. Section 112: Extension of temporary minimum low-income housing tax credit rate for non-Federally subsidized buildings. Section 113: Extension of military housing allowance exclusion for determining whether a tenant in certain counties is low-income. Section 115: Extension of New Markets Tax Credit. Section 125: Extension of Bonus Depreciation. Section 127: Extension of increased expensing limitations and treatment of certain real property as section 179 property. Section 156: Extension of Credit for Energy Efficient New Homes. Section 158: Extension of Energy Efficient Commercial Buildings deduction. S. 2260, Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. Section 112: Extension and modification of temporary minimum low-income housing tax credit rate for non-Federally subsidized new buildings. Section 113: Extension of military housing allowance for determining area median gross income. Section 115: Extension and modification of New Markets Tax Credit. Section 125: Extension of Bonus Depreciation. Section 127: Extension and modification of increased expensing limitations and treatment of certain real property as section 179 property. Section 157: Extension of Credit for Energy Efficient New Homes. Section 159: Extension and modification of Energy Efficient Commercial Buildings deduction. Carried Interest S. 268, Cut Unjustified Tax Loopholes Act, Title VI, Ending the Carried Interest Loophole (Section 601: Short Title. Section 602: Partnership Interests Transferred in Connection with Performance of Services. Section 603: Special rules for Partners Providing Investment Management Services to Partnerships.) Low-Income Housing Tax Credit (LIHTC) H.R. 4717, to make permanent and expand the minimum rate for the LIHTC, all provisions. S. 1442, Improving the Low Income Housing Tax Credit Rate Act, to amend the Internal Revenue Code of 1986 to make permanent the minimum low-income housing tax credit rate for unsubsidized buildings and to provide a minimum 4 percent credit rate for existing buildings, all provisions. Obama Administration's Fiscal Year 2015 Budget Revenue Proposal to Encourage Mixed Income Occupancy by Allowing Low-Income Housing Tax Credit-Supported Projects to Elect a Criterion Employing a Restriction on Average Income We also considered proposals to expand the credit, such as ones to increase the program by 50% or convert private activity bonds into Low-Income Housing Tax Credits. Energy Tax Incentives S. 2189, the Energy Efficiency Tax Incentives Act. Section 101: Extension and modification of deduction for energy-efficient commercial buildings. Section 102. Deduction for retrofits of existing commercial and multifamily buildings. Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2870, Real Estate Investment and Jobs Act of 2013, to amend the Internal Revenue Code to exempt certain stock of real estate investment trusts from the tax on foreign investments in United States real property, all provisions. S. 1181, Real Estate Investment and Jobs Act of 2013, to amend the Internal Revenue Code to exempt certain stock of real estate investment trusts from the tax on foreign investments in United States real property, all provisions. Amendment filed by Senators Menendez and Enzi to draft legislation before the Senate Finance Committee, Preserving Americas Transit and Highways Act, which would remove the tax penalty FIRPTA imposes on foreign pension funds investing in U.S. real estate and increase the ownership stake a foreign investor can take in a publicly traded company whose assets consist largely of U.S. real property without triggering FIRPTA. H.R. 5487, Real Estate Investment and Jobs Act of 2014, to amend the Internal Revenue Code to exempt certain stock of real estate investment trusts from the tax on foreign investments in United States real property interests, all provisions. Treasury Regulations REG-119305-11: This document contains proposed regulations under section 707 of the Internal Revenue Code relating to disguised sales of property to, or by, a partnership and under section 752 relating to the treatment of partnership liabilities.

Client expense: $430,500 · Firm income: Not reported

Government targets: Army, Dept of (Corps of Engineers), Energy, Dept of, Environmental Protection Agency (EPA), Equal Employment Opportunity Commission (EEOC), Federal Communications Commission (FCC), Federal Housing Finance Agency (FHFA), Federal Reserve System, HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Labor, Dept of (DOL), Natl Economic Council (NEC), Office of Management & Budget (OMB), President of the U.S., SENATE, Small Business Administration (SBA), Social Security Administration (SSA), Treasury, Dept of, U.S. Postal Service (USPS)

H.R. 2870, Real Estate Investment and Jobs Act S.1181, Real Estate Investment and Jobs Act H.R. 5487 Real Estate Investment and Jobs Act of 2014

Client expense: Not reported · Firm income: $30,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 2870, Real Estate Investment and Jobs Act S.1181, Real Estate Investment and Jobs Act All issues related to tax reform H.R. 5487 Real Estate Investment and Jobs Act of 2014

Client expense: Not reported · Firm income: $30,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Foreign Investment in Real Property Tax Act S.1181, The Real Estate Investment and Jobs Act H.R. 2870, The Real Estate Investment and Jobs Act H.R. 5487 Real Estate Investment and Jobs Act of 2014

Client expense: Not reported · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Foreign Investment in Real Property Tax Act S.1181, The Real Estate Investment and Jobs Act H.R. 2870, The Real Estate Investment and Jobs Act H.R. 5487 Real Estate Investment and Jobs Act of 2014

Client expense: Not reported · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Followed all issues related to tax policy, H.R. 2870 Real Estate Investment and Jobs Act, S. 1181 Real Estate Investment and Jobs Act, Carried Interest, Foreign Investment in Real Property Tax Act, Tax extenders, Tax reform, 179D Energy Efficient Building tax deduction, Foreign account tax compliance Act guidance, Extension of 15-year depreciation schedule H.R. 1265; S.687 The Marketplace Fairness Act - S.1832; The Marketplace Equity Act - H.R. 3179, IRS Notice 20007-55 H.R. 5487 Real Estate Investment and Jobs Act of 2014

Client expense: Not reported · Firm income: $20,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Followed issues in the real estate industry Eminent Domain Sustainable Communities H.R. 5487 Real Estate Investment and Jobs Act of 2014

Client expense: Not reported · Firm income: $20,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Tax reform proposals; S. 2260, Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, all provisions; taxation of hotel room reservations made over the Internet; H.R.684, Marketplace Fairness Act of 2013, all provisions; S.743, Marketplace Fairness Act of 2013, all provisions; S.336, Marketplace Fairness Act of 2013, all provisions; S.2609, A bill to restore States' sovereign rights to enforce State and local sales and use tax laws, and for other purposes, all provisions; H.R.3086, Permanent Internet Tax Freedom Act, all provisions; S.1431, Internet Tax Freedom Forever Act, all provisions; H.R.434, Permanent Internet Tax Freedom Act, all provisions; S.31, Permanent Internet Tax Freedom Act of 2013, all provisions; issues related to online travel services; H.R.5487, Real Estate Investment and Jobs Act of 2014, all provisions; S.2609, Marketplace and Internet Tax Fairness Act, all provisions.

Client expense: $370,000 · Firm income: Not reported

Tax Reform Carried Interest - S. 268, Cut Loopholes Act Real Estate Investment & Jobs Act - S. 1181, H.R. 2870, and H.R. 5487 Expiring Tax ProvisionsThe Marketplace Fairness Act - S. 336, S.743 and H.R. 684 Extension of 15-year Depreciation Schedule S. 749 179D Energy Efficient Building Tax Deduction, S. 2189 Foreign Accounting Tax Compliance Act Guidance IRS Notice 2007-55 Partnership Liability Allocation Regulations and Disguised Sale Regulations (Treas. Reg. 119305-11) Expire Act - tax extenders S. 2260 Tax Reform Act of 2014 (Ways and Means Committee discussion draft) "Fractions Rule" regulations (tax-exempt investors and debt-financed real estate) under I.R.C. Sec. 514(c)(9) Treasury/Budget proposal (Greenbook) on Like-Kind Exchanges (Sec. 1031) Corporate Investers Earnings Stripping Reform Act of 2014, S. 2786 and other earnings stripping tax proposals

Client expense: $1,000,000 · Firm income: Not reported

Duty suspensions: H.R. 5487 & H.R. 5488, S. 2461, and 2462 (new bills to be introduced in 113th Congress) regarding laboratory glass and certain textured rolled glass sheets.

Client expense: $130,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, U.S. Trade Representative (USTR)

Duty suspensions: H.R. 5487 & H.R. 5488, S. 2461, and 2462 (new bills to be introduced in 113th Congress) regarding laboratory glass and certain textured rolled glass sheets.

Client expense: $230,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, U.S. Trade Representative (USTR)