Tax Technical Corrections Act of 2016

REIT spin-off rules Estate tax regulations under Section 2704 Tax Reform, including House Republican tax reform blueprint Carried Interest Internet sales tax legislation 179D Energy Efficient Building Tax Deduction Partnership Liability Allocation Regulations and Disguised Sale Regulations (Treas. Reg. 119305-11) "Fractions Rule" regulations (tax-exempt investors and debt-financed real estate) under I.R.C. Sec. 514 (c)(9) Like-Kind Exchanges (Sec. 1031) REIT preferential divident rulings Partnership audit reform, implementing regulations Completed contract method of accounting and condominimum construction (Section 460(e)) FIRPTA Reform implementing regulations and FIRPTA repeal Tax Technical Corrections Act of 2016 (H.R. 6439, S. 3506) Tax loss limitation regimes and at-risk rules (Sec. 465) Debt-equity tax regulations (Section 385) Tax regulatory reform (Executive Order 13789)

Client expense: $1,185,118 · Firm income: Not reported

Government targets: Army, Dept of (Corps of Engineers), Commerce, Dept of (DOC), Commodity Futures Trading Commission (CFTC), Director of National Intelligence (ODNI), Energy, Dept of, Environmental Protection Agency (EPA), Federal Accounting Standards Advisory Board (FASAB), Federal Aviation Administration (FAA), Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency (FHFA), Federal Reserve System, HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Labor, Dept of (DOL), Office of Management & Budget (OMB), Office of the Comptroller of the Currency (OCC), SENATE, Securities & Exchange Commission (SEC), State, Dept of (DOS), Transportation, Dept of (DOT), Treasury, Dept of, White House Office

Tax Reform Promoted comprehensive approach to tax reform that avoids enacting reform for C corporations at the expense of flow-through entities or otherwise disadvantaging multifamily real estate relative to other asset classes. 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 (while also increasing program resources) 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. We oppose proposals increasing taxes on capital gains. Finally, we favor: (1) repealing or reforming FIRPTA rules to incent foreign investment in U.S. real estate; and (2) expanding incentives for energy efficiency in commercial buildings (e.g., Internal Revenue Code Section 179D). House Republican Tax Reform Blueprint, A Better Way: A Pro-Growth Tax Code for All Americans, all provisions. Trump Administration Tax Plan, 2017 Tax Reform for Economic Growth and American Jobs, all provisions. S. 1144, Investment in New Ventures and Economic Success Today (INVEST) Act of 2017, to encourage business creation by allowing faster recovery of start-up and organizational expenses, to simplify accounting methods for small businesses, to expand expensing and provide accelerated cost recovery to encourage investment in new plants and equipment, and for other purposes, Section 301: Modifications of Rules for Expensing Depreciable Assets; Section 311: 50-Percent Expensing Made Permanent. H.R. 4377 (114th Congress), American Business Competitiveness Act of 2015 , legislation to amend the Internal Revenue Code of 1986 to tax business income on a cash flow basis and for other purposes, all provisions. Proposals to amend the taxation of financial products and providing for an exception from the definition of a derivative for real estate that is to be delivered. Energy Supported extension of the Section 45L New Energy Efficient Home Credit and the Section 179D Energy Efficient Commercial Buildings Deduction (also favor improving the Commercial Buildings Deduction by establishing a sliding scale of energy improvements, which would help spur investment in energy efficient improvements in older buildings). Low-Income Housing Tax Credit (LIHTC) H.R. 1661, Affordable Housing Credit Improvement Act of 2017, to amend the Internal Revenue Code of 1986 to reform the low-income housing tax credit, and for other purposes, all provisions. S. 548, Affordable Housing Credit Improvement Act, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. Workforce Housing S. 3384 (114th Congress), Middle-Income Housing Tax Credit Act of 2016, to amend the Internal Revenue Code of 1986 to provide a credit for middle-income housing, all provisions. Analyzed Housing Affordability Tax Incentives, including Renter Tax Credits and Employer-Provided Housing Tax Exclusions. Partnership Audits H.R. 6439/S.3506 (114th Congress), The Tax Technical Corrections Act of 2016, Section 101: Amendments Relating to Protecting Americans From Tax Hike Act of 2015, Exception from Qualified Pension Funds; Title II-Technical Corrections Related to Partnership Audit Rules, all provisions. Department of the Treasury and Internal Revenue Service, Notice of proposed rulemaking on Centralized Partnership Audit Regime, REG-136118-15. S Corporation Modernization H.R. 1696 / S. 711, S Corporation Modernization Act of 2017, to amend the Internal Revenue Code of 1986 to provide for S corporation reform, and for other purposes, all provisions. Estate Tax Regulations Department of the Treasury, Internal Revenue Service REG-163113-02, Estate, Gift, and Generation-Skipping Taxes; Restrictions on Liquidation of an Interest. House Appropriations Financial Services Subcommittee legislation, Making appropriations for financial services and general government for the fiscal year ending September 30, 2018, and for other purposes, Administrative Provisions -- Internal Revenue Service, Section 115: Denies funds to finalize, enforce or implement Proposed Treasury Regulations relating to the liquidation of an interest with respect to estate, gift, and generation-skipping taxes under Section 2704 of the Internal Revenue Code.

REIT spin-off rules Estate tax regulations under Section 2704 Tax Reform, including House Republican tax reform blueprint Carried Interest Internet sales tax legislation 179D Energy Efficient Building Tax Deduction Partnership Liability Allocation Regulations and Disguised Sale Regulations (Treas. Reg. 119305-11) "Fractions Rule" regulations (tax-exempt investors and debt-financed real estate) under I.R.C. Sec. 514 (c)(9) Like-Kind Exchanges (Sec. 1031) REIT preferential divident rulings Partnership audit reform, implementing regulations Completed contract method of accounting and condominimum construction (Section 460(e)) FIRPTA Reform implementing regulations and FIRPTA repeal Tax Technical Corrections Act of 2016 (H.R. 6439, S. 3506) Tax loss limitation regimes and at-risk rules (Sec. 465)

Client expense: $836,000 · Firm income: Not reported

Tax Reform Promoted comprehensive approach to tax reform that avoids enacting reform for C corporations at the expense of flow-through entities or otherwise disadvantaging multifamily real estate relative to other asset classes. 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 (while also increasing program resources) 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. We oppose proposals increasing taxes on capital gains. Finally, we favor: (1) repealing or reforming FIRPTA rules to incent foreign investment in U.S. real estate; and (2) expanding incentives for energy efficiency in commercial buildings (e.g., Internal Revenue Code Section 179D). House Republican Tax Reform Blueprint, A Better Way: A Pro-Growth Tax Code for All Americans, all provisions. Energy Supported extension of the Section 45L New Energy Efficient Home Credit and the Section 179D Energy Efficient Commercial Buildings Deduction (also favor improving the Commercial Buildings Deduction by establishing a sliding scale of energy improvements, which would help spur investment in energy efficient improvements in older buildings). Low-Income Housing Tax Credit (LIHTC) H.R. 1661, Affordable Housing Credit Improvement Act of 2017, to amend the Internal Revenue Code of 1986 to reform the low-income housing tax credit, and for other purposes, all provisions. S. 548, Affordable Housing Credit Improvement Act, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. Workforce Housing S. 3384 (114th Congress), Middle-Income Housing Tax Credit Act of 2016, to amend the Internal Revenue Code of 1986 to provide a credit for middle-income housing, all provisions. Community Development HR 1416, to amend the Internal Revenue Code of 1986 to exclude from gross income contributions to the capital of a partnership, and for other purposes, all provisions. Partnership Audits P.L. 114-74, Bipartisan Budget Act of 2015, Section 1101, partnership audits and adjustments. H.R. 6439/S.3506 (114th Congress), The Tax Technical Corrections Act of 2016, Section 101: Amendments Relating to Protecting Americans From Tax Hike Act of 2015, Exception from Qualified Pension Funds; Title II-Technical Corrections Related to Partnership Audit Rules, all provisions. S Corporation Modernization H.R. 1696 / S. 711, S Corporation Modernization Act of 2017, a bill to amend the Internal Revenue Code of 1986 to provide for S corporation reform, and for other purposes, all provisions. Tax Regulations Department of the Treasury, Internal Revenue Service REG-163113-02, Estate, Gift, and Generation-Skipping Taxes; Restrictions on Liquidation of an Interest

Tax reform; Tax Technical Corrections Act of 2016 (H.R. 6439, S.3506)

Client expense: Not reported · Firm income: Not reported

H.R.235, Permanent Internet Tax Freedom Act. H.R.297, Stop Tax Haven Abuse Act HR 1631, Digital Goods and Services Tax Fairness Act of 2015 HR 1700, Freedom from Internet Tax Act HR 2303, Mobile Workforce State Income Tax Simplification Act of 2015 HR 4068, Promote Startups Act of 2015 HR 4962, The Multi-State Worker Tax Fairness Act of 2016 HR 5754, S Corporation Modernization Act of 2016 HR 5830, To amend the Internal Revenue Code of 1986 to apply payroll taxes to remuneration and earnings from self-employment up to the contribution and benefit base and to remuneration in excess of $250,000. HR 5754, S Corporation Modernization Act of 2016 HR 6439, Tax Technical Corrections Act of 2016 S.698, Marketplace Fairness Act of 2015 S.2813, The Multi-State Worker Tax Fairness Act of 2016 S.3181, S Corporation Modernization Act of 2016 S.3506, Tax Technical Corrections Act of 2016 S.3181, S Corporation Modernization Act of 2016

Client expense: $110,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Carried Interest/Enterprise Value Regulation of passive investment in U.S. securities and other assets by non-U.S. investors. Tax reform in non-U.S. jurisdictions. Pending legislation on international tax reform. Management and Control Unrelated Business Income Tax (UBIT) Legislative oversight of implementation of rules under 871(m) of the Tax Code. Oversight of 305(c) Implementation H.R. 2889 - To amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities. S.1686 - To amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities. H.R. 1314 - the Bipartisan Budget Act of 2015 - To amend the Internal Revenue Code of 1986 to provide for a right to an administrative appeal relating to adverse determinations of tax-exempt status of certain organizations. (partnership audit provisions) An Amendment to H.R. 2029 - the Consolidated Appropriations Act, 2016 (omnibus appropriations - partnership audit provisions) OECD BEPS Tax Treaty Project. H.R.6439 - the Tax Technical Corrections Act of 2016

Client expense: $920,000 · Firm income: Not reported

H.R. 5394-Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2017 - legislative proposal to include a corrosion prevention study in the underlying bill. S. 2844-Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2017-legislative proposal to include a corrosion prevention study in the underlying bill. H.R. 6439-Tax Technical Corrections Act of 2016-legislation to amend the Internal Revenue Code to make technical corrections to previously enacted laws and partnership audit rules. Bill in entirety.

Client expense: $160,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Veterans Employment & Training Service

Non-recourse carve-out provisions and IRS Chief Counsel Advice Estate tax regulations under Section 2704 Tax Reform, including House Republican tax reform blueprint Carried Interest, including Carried Interest Fairness Act of 2015 (H.R. 2889) Internet sales tax legislation: S. 698 and H.R. 2775 179D Energy Efficient Building Tax Deduction Partnership Liability Allocation Regulations and Disguised Sale Regulations (Treas. Reg. 119305-11) "Fractions Rule" regulations (tax-exempt investors and debt-financed real estate) under I.R.C. Sec. 514(c)(9) Like-Kind Exchanges (Sec. 1031), including S. 1631 and Treasury Greenbook proposal Earnings stripping tax proposals, OECD Base Erosion and Profit Shifting Initiative, and Treasury's related regulations under Section 385 REIT preferential dividend rulings Partnership audit reform, implementing regulations Completed contract method of accounting and condominium construction (Section 460(e)) FIRPTA Reform implementing regulations Tax Technical Corrections Act of 2016 (H.R. 6439, S. 3506)

Client expense: $825,000 · Firm income: Not reported

Tax Reform Promoted comprehensive approach to tax reform that avoids enacting reform for C corporations at the expense of flow-through entities or otherwise disadvantaging multifamily real estate relative to other asset classes. 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 (while also increasing program resources) 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. We oppose proposals increasing taxes on capital gains. Finally, we favor: (1) repealing or reforming 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). House Republican Tax Reform Blueprint, A Better Way: A Pro-Growth Tax Code for All Americans, all provisions. Energy H.R. 6376, to amend the Internal Revenue Code of 1986 to modify the energy efficient commercial buildings deduction, and for other purposes, all provisions. Supported extension of the Section 45L New Energy Efficient Home Credit, the Section 48 Energy Credit, and the Section 179D Energy Efficient Commercial Buildings Deduction (also favor improving the Commercial Buildings Deduction by establishing a sliding scale of energy improvements, which would help spur investment in energy efficient improvements in older buildings). Worker Classification H.R. 5008, Clarify Workers Misclassification in the Construction Industry Act, to direct the Secretary of the Treasury to improve tax compliance in the construction industry, including clarifying the employment status of service providers in the construction industry, and for other purposes, all provisions. Low-Income Housing Tax Credit (LIHTC) S. 2962, Affordable Housing Credit Improvement Act of 2016, to amend the Internal Revenue Code of 1986 to reform the low-income housing tax credit, and for other purposes, all provisions. S. 3237, Affordable Housing Credit Improvement Act of 2016, to amend the Internal Revenue Code of 1986 to reform the low-income housing tax credit, and for other purposes, all provisions. Workforce Housing S. 3384, Middle-Income Housing Tax Credit Act of 2016, to amend the Internal Revenue Code of 1986 to provide a credit for middle-income housing, all provisions. Carried Interest H.R. 2889/S.1686, Carried Interest Fairness Act of 2015, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities, all provisions. Partnership Audits P.L. 114-74, Bipartisan Budget Act of 2015, Section 1101, partnership audits and adjustments. H.R. 6439/S.3506, The Tax Technical Corrections Act of 2016, Section 101: Amendments Relating to Protecting Americans From Tax Hike Act of 2015, Exception from Qualified Pension Funds; Title II-Technical Corrections Related to Partnership Audit Rules, all provisions. Tax Regulations Department of the Treasury, Internal Revenue Service TD-9787, Section 707 Regarding Disguised Sales, Generally Department of the Treasury, Internal Revenue Service TD-9798, Liabilities Recognized as Recourse Partnership Liabilities Under Section 752 Department of the Treasury, Internal Revenue Service Proposed REG-122855-15, Liabilities Recognized as Recourse Partnership Liabilities Under Section 752 Department of the Treasury, Internal Revenue Service REG-163113-02, Estate, Gift, and Generation-Skipping Taxes; Restrictions on Liquidation of an Interest

Partnership and individual tax issues involving Publicly Traded Partnerships, including the new large partnership audit regime (HR 6439 and S 3506) and proposed qualifying income regulations.

Client expense: $80,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Partnership and individual tax issues involving Publicly Traded Partnerships, including the new large partnership audit regime (HR 6439 and S 3506) and proposed qualifying income regulations.

Client expense: Not reported · Firm income: $80,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE