Daily Real Estate News  |  November 4, 2008  |   Real Estate Industry Closely Watching Polls
The world of real estate is watching the election closely as Americans go to the polls today.

The nonpartisan Center for Responsive Politics, which tracks election contributions, calls this election the most expensive in history. It says that as of Oct. 21, contributions to all candidates for federal office, political party committees, and federally focused election committees from those identifying themselves as employed in real estate add up to $105.5 million.

While real estate associations don't endorse presidential candidates that doesn’t stop them from monitoring and assessing the candidates’ policies.

[Editor's note: Read the presidential candidates' views on boosting home sales, increasing affordability, making affordable health insurance available to small businesses, and other real estate industry issues in a REALTOR® Magazine Q&A with the two candidates.]

Here are some issues that have been identified by the Institute of Real Estate Management (IREM) as worthy of consideration by voters:

Capital gains. Sen. John McCain has proposed leaving the capital gains rate where it is – 15 percent, while Sen. Barack Obama says he will raise capital gains taxes to 20 percent for families that earn more than $250,000 a year.

Corporate taxes. Obama favors leaving taxes at 35 percent, while McCain has proposed lower the corporate tax rate to 25 percent. McCain’s website says: “We now have the second highest corporate tax rate in the world, making America a less attractive place for companies to do business,”

Carried interest. Carried interest is the share of profits paid out as compensation to a general partner in a limited partnership or limited liability corporation. 46 percent of partnership tax returns in 2005 were tied to real estate, according to IREM. The question is whether carried interest should be taxed at the capital gains rate – now 15 percent – or as ordinary income at a rate as high as 35 percent. Obama supports taxing carried interest as ordinary income, while McCain supports the status quo.

Source: Penton Insight (10/29/08) and Center for Responsive Politics (10/23/2008)