BOMA Position
BOMA supports efforts to reduce, if not eliminate, taxes on capital gains. Reducing or eliminating capital gains taxes would stimulate prudent investment as well as promote a reasonable expansion of construction activity in the office building industry. The result of such increased investment would be job creation, economic growth and the enhancement of America's competitiveness.
Background
All transactions that involve the sale or exchange of a capital asset result in either a capital gain or loss. By taxing gain on real estate assets, the federal government discourages a range of desirable economic activities: the acquisition and development of commercial properties; lending to finance or refinance investment in those properties; and the employment of skilled workers involved in construction, renovation and remodeling work.
In the spring of 2003, in order to boost the faltering U.S. economy, President Bush signed a stimulus package into law that reduced the capital gains rate from 20 percent to 15 percent (5 percent for low income taxpayers) through 2008.
In 2006, Congress passed a two-year extension through 2010.
BOMA International continues to advocate for a permanent capital gains tax reduction or elimination.
Action Requested
BOMA members are urged to contact their Congressional representatives to communicate their interest in further reducing or eliminating capital gains tax, or, at a minimum, making the tax changes passed in 2006 (and set to expire in 2010) permanent.