In previous years, legislation passed the U.S. House to treat carried interest compensation as ordinary income instead of taxing it at the capital gains rate. To date, the U.S. Senate has been hesitant to change the tax treatment of carried interests. However, with comprehensive tax reform possibly on the table in the 113th Congress, both chambers could view a change in the tax treatment of carried interests as a way to offset the cost of lowering general tax rates or of increasing the perceived fairness of the tax system.
With 35% Yearly Increase, Lending Volume Grows
Following on the solid 24% yearly gains in 2012, commercial real estate investments notched a very strong first quarter of 2013. Sales of major properties totaled $72.8 billion in the
first quarter, a 35% rise from a year ago, according to Real Capital Analytics. Portfolio transactions made up a large portion of the volume, especially due to the sale of Archstone apartment properties to Equity Residential and Avalon Bay. Individual property sales comprised $40 billion, a 7.8% gain from the same quarter last year.
Reducing energy consumption is paramount to effective operation and management of commercial properties today. Owners of commercial buildings can, for example, install high efficiency LED lights that are up to 50% more efficient than fluorescent lighting. Since lighting accounts for around 35 percent of a property’s total energy costs, a retrofit can result in significant savings and reduce the carbon footprint dramatically.