For a replay of our discussion on the likely impacts of House and Senate tax reform plans on the Housing/Financials Sectors CLICK HERE.
KEY TOPICS WILL INCLUDE:
- Hold the SALT | The most talked about fallout areas under the proposals on the Hill are itemizing residents in states with large State and Local Tax burdens (SALT). The killing of the SALT deduction will lead to dramatic changes in taxes for homeowners in states like New York and California. We will discuss the ramifications of losing these deductions in the different metro markets.
- On the Whole | Beyond SALT, homeowners also face the prospect of reduced Mortgage Interest Deductions and a capping of their Property Tax deductions. We will run through our zip-code level model on the impact of changes to after tax income, with a focus on the Tri-State area (NYC), and the Case Shiller 20 Cities.
- Who Bears the Burden | Using the data and details at hand, we will discuss the ramifications for the various segments of the housing complex, as well as consider the outlook for housing inventory in the face of changes to the exclusion of capital gains on sale provision and the increased disincentive to sell under full MID grandfathering on existing properties.
- Repatriation | There appears to be another repatriation window opening up on foreign profits still kept overseas. We will explore what the current language looks like and the potential for melding with the House for passage.
- Carried Interest | Will be an important treatment for the alternative asset managers. We will outline the interplay between lower corporate tax rates and the requirement to extend investment duration to qualify for long term capital gains.
