News Type: Roundtable Weekly

Government Shutdown Deadline Nears

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Congress has less than a week to keep the government open as an Oct. 1 shutdown looms. (Punchbowl News, Sept. 24)

State of Play

  • House GOP plan: A continuing resolution (CR) through Nov. 21 that would also extend the National Flood Insurance Program (NFIP). Senate Democrats blocked it. (Politico, Sept. 25)
  • Democratic plan: A shorter CR to Oct. 31 that adds priorities such as Affordable Care Act subsidies and reversing Medicaid cuts. Senate Republicans blocked it. (Punchbowl News, Sept. 23)
  • GOP leaders frame their plan as a clean extension to buy time to keep the government open while negotiations continue. Democrats say Republicans are ignoring urgent needs.
  • On Wednesday, President Trump canceled a planned meeting with Senate Democratic Leader Chuck Schumer (D-NY) and House Democratic Leader Hakeem Jeffries (D-NY), rejecting their push to include healthcare funding in a deal to avert a shutdown. (AP News, Sept. 23)
  • In a social media post, he said no meeting with Democratic leaders “could possibly be productive.”
  • Rep. Jeffries also scheduled a caucus call on Friday to discuss “the path forward,” and a follow-up meeting in Washington on Sept. 29, despite the House being out of session. (Roll Call, Sept. 24)

Government Funding & CRE

  • Without congressional action, the NFIP will lapse on Sept. 30. Another short-term extension would be its 34th in eight years.
  • The Real Estate Roundtable (RER) supports a sustainable, long-term NFIP reauthorization with appropriate reforms. A robust program is essential for residential markets, catastrophe insurance capacity, and the broader economy.
  • The CR would also let the Department of Housing and Urban Development (HUD) use funds to prevent evictions in the Tenant-Based Rental Assistance program. (PoliticoPro, Sept. 17)

Senate Democratic Leaders say they won’t support any House-passed funding bill unless GOP leaders negotiate, while Republicans argue there’s nothing to discuss—casting next week’s vote on a “clean” CR as the only path forward. (The Hill, Sept. 25)

OB3 Act Ends “Phantom Income” Tax Penalty on Condominium Development

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A new PwC analysis highlights the significance of tax accounting reforms in the One Big Beautiful Bill (OB3) Act, which end a long-standing burden on condominium developers—a change long advocated by The Real Estate Roundtable.

Why It Matters

  • The OB3 Act expands eligibility for the completed contract method (CCM) of accounting, allowing residential condominium projects to defer income recognition until projects are substantially complete. (PwC Study, Sept. 18)
  • This reform aligns tax liability with actual receipts and ends the problem of phantom income that often arises when condo units are pre-sold to buyers prior to completion. The change closely tracks standalone legislation, the Fair Accounting for Condominium Construction Act, long championed by RER. (RER Annual Report, July 2025)
  • Mixed-use projects with a substantial residential component can also qualify if 80% or more of the costs are tied to dwelling units. (PWC Study, Sept. 18)
  • Prior tax rules forced developers to use the percentage-of-completion method (PCM), requiring them to pay taxes on projected profits before projects were completed or units were sold.
  • PwC notes the expansion “opens the door” for general contractors and subcontractors to benefit, particularly in high-cost urban markets where new housing is most needed.

Roundtable Advocacy – Condominium Construction

  • Since 2015, RER has sought to promote housing construction by repealing the discriminatory tax accounting rule that unfairly creates phantom income for condo developers.
  • New condominium developments can take years to complete. Developers often market units and collect deposits to secure financing, but contractual restrictions typically limit access to those funds until closing.
  • Recent sponsors of the Fair Accounting for Condominium Construction Act have included Rep. Vern Buchanan (R-FL) in the House and Sen. Todd Young (R-IN) in the Senate.

RER will continue advocating for policies that encourage capital formation, housing construction, and rational taxation of real estate.

Fed Cuts Rates in Welcome Move for CRE

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On Wednesday, the Federal Reserve reduced its benchmark interest rate by 25 basis points, marking the first rate cut since December 2024. Central bank officials also projected two additional rate reductions this year, citing growing concerns about labor market softening and economic headwinds.

Fed’s Decision

  • The Fed’s move brings its target federal funds rate to a range of 4 percent to 4.25 percent, aligning with expectations on Wall Street. (CNBC, Sept. 17)
  • Fed Chair Jerome Powell emphasized that while inflation remains above the 2 percent target, rising signs of labor market weakness justify a more accommodative stance.
  • Governor Stephen Miran, confirmed to the Fed Board on Monday, cast the lone dissent in favor of a steeper half-point cut.
  • The central bank’s latest projections signal two more rate cuts before year-end, though the “dot plot” of officials’ individual expectations varied considerably.

Housing Impact

  • Mortgage rates have responded quickly to the Fed’s decision, falling to 6.17 percent as of Thursday—the lowest level in nearly a year. (Fortune, Sept. 18)
  • However, mortgage rates remain elevated compared to pre-pandemic levels, leaving many prospective homebuyers priced out. Home values remain roughly 50 percent higher than at the start of the decade. (AP News, Sept. 18)
  • Chair Powell acknowledged that monetary policy alone cannot solve the nation’s housing affordability crisis. “There’s a deeper problem here, that’s not a cyclical problem that the Fed can address, and that is just a pretty much nationwide housing shortage,” he said. (CNN, Sept. 17)
  • The Real Estate Roundtable (RER) continues to advocate for bipartisan solutions that increase housing supply and reduce regulatory barriers to new development, such as the Road to Housing Act (S. 2651) and the Revitalizing Downtowns and Main Streets Act (H.R. 2410).

Implications for CRE

(L-R): Jef Conn, Jeffrey DeBoer, and Shannon McGahn
  • The Fed’s rate cut comes soon after the release of RER’s Q3 2025 Sentiment Index, which reflected cautious optimism among CRE executives. The Index rose 13 points from last quarter to a score of 67, as signs of stabilization and sector-specific growth have started to emerge. (Roundtable Weekly, Sept. 5)
  • Interest rate cuts could provide a modest tailwind for CRE markets, although some property types remain under pressure.
  • Further reductions in borrowing costs into 2026 could support more robust valuations and transaction activity. (Multifamily Dive, Sept. 17)
  • At the 2025 C5 + CCIM Global Summit in Chicago this week, RER President & CEO Jeffrey DeBoer joined Shannon McGahn (Executive Vice President and Chief Advocacy Officer, National Association of REALTORS®) and Jef Conn (Industrial & Office Specialist, Coldwell Banker Commercial Capital Advisors) on a panel to discuss the bipartisan nature of the nation’s affordable housing crisis.
  • DeBoer emphasized the need for a construction visa program to expand the labor force and build more supply, along with policies such as YIMBY legislation, property conversion incentives, and permitting reforms to help address the crisis.

The Fed’s next rate decision is scheduled for Oct. 29, with the final FOMC meeting of the year set in early December.

Government Funding Deadline Looms as NFIP Nears Expiration; RER Hosts Town Hall

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Senate Democrats on Friday blocked a House-passed stopgap spending bill that would have funded federal agencies for seven weeks, setting the stage for a potential Oct. 1 government shutdown.

  • The measure failed on a 44-48 vote, with only Sen. John Fetterman (D-PA) joining Republicans in support of the proposal, which had cleared the House earlier in the day by a narrow 217-212 vote. (The Hill, Sept. 19)
  • Senate Majority Leader John Thune (R-S.D.) said the Senate will reconsider the vote when lawmakers return from recess. (Roll Call, Sept. 19)
  • Earlier in the week, House Republicans introduced their continuing resolution (CR) to keep federal agencies open through Nov. 21, while Democrats countered with a plan extending funding only until Oct. 31. (Punchbowl News, Sept. 18)
  • Lawmakers may not return until Sept. 29, leaving less than 48 hours to avert a shutdown. (Punchbowl News | PoliticoPro, Sept. 19)

Government Funding & CRE

  • The House GOP bill would also extend the National Flood Insurance Program (NFIP) until Nov. 21. Without congressional action, the NFIP will expire on Sept. 30. If approved, the House GOP’s proposal would mark the NFIP’s 34th short-term extension in eight years.
  • Lawmakers from both parties have long called for an overhaul, and signaled interest in pursuing longer-term reforms to the program.
  • Policymakers in both chambers have signaled interest in pursuing longer-term reforms to NFIP. Chair of the Senate Banking Securities, Insurance and Investment Subcommittee, Mike Rounds (R-SD) said he expects “some reforms that can occur” this fall to put the program on a stronger financial footing. (PoliticoPro, Sept. 18)
  • The rising cost of insurance premiums due to the growing number of billion-dollar natural disasters reinforces the importance of the NFIP.
  • The Real Estate Roundtable (RER) has long supported a sustainable, long-term NFIP reauthorization with appropriate reforms. A robust program is essential for residential markets, catastrophe insurance capacity, and the broader economy.
  • The funding bill would also allow the Department of Housing and Urban Development (HUD) to use available funds to prevent evictions of households served by the Tenant-Based Rental Assistance program. (PoliticoPro, Sept. 17)

RER Town Hall

  • RER hosted a virtual Town Hall this week, “How Today’s Political Climate Impacts Real Estate,” with Politico’s Jonathan Martin (Politics Bureau Chief and Senior Political Columnist)
  • The discussion was led by RER Chair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate), RER President and CEO Jeffrey DeBoer, and RER policy staff.
  • Martin shared his outlook on the 2026 and 2028 elections, the messaging challenges facing both parties, and shifting party identities.
  • He cautioned that a short-term government shutdown remains “more likely than not” as both parties seek leverage over Medicaid cuts and health care tax credits.

RER members also engaged in policy discussions on a number of policy priorities, including the implementation of the OB3 Act, Section 899 “revenge tax” concerns, Opportunity Zones, clean energy tax incentives, housing finance reform, and the future of TRIA.

Congressional Democrats Reintroduce Bill to Tax Unrealized Gains

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Senate Finance Committee Ranking Member Ron Wyden (D-OR) introduced the bicameral Billionaires Income Tax Act this week with support from 20 Senate Democrats. The legislation mirrors the version first introduced by Sen. Wyden in 2023, and would tax the appreciation of wealthy individuals’ assets. Identical legislation was introduced in the House by Reps. Donald Beyer (D-VA) and Steve Cohen (D-TN). (PoliticoPro, Sept. 17)

Billionaires Income Tax Act (BITA)

  • Under BITA, tradable, liquid assets would be marked-to-market and taxed annually on their appreciation, while illiquid assets would be subject to a “deferral recapture” tax when sold—or if certain other currently nontaxable events occur, such as death, a transfer to a trust, or a like-kind exchange. (Bill text | Press release | One-pager, Sept. 17)
  • The bill would apply to taxpayers with more than $100 million in annual income or more than $1 billion in assets for at least three consecutive years. (PoliticoPro, Sept. 17)
  • The legislation is not limited to future appreciation of assets. It would also apply to accumulated, unrealized gains at the time of enactment. Tax on these built-in gains could be paid over five years.
  • Additional rules would govern unrealized losses, as well as assets held in partnerships.

Roundtable View      

  • Real Estate Roundtable (RER) President and CEO Jeffrey DeBoer said: “Taxing unrealized gains would upend over 100 years of federal taxation, require an unprecedented IRS intrusion into household finances, and create harmful unintended consequences. Deferring taxes until assets are sold supports entrepreneurs while encouraging long-term investment and productive risk-taking. This proposal lacks broad policy support, carries considerable risk, and should be rejected.”
  • Past attempts at wealth taxes in other countries have also collapsed—largely abandoned due to administrative problems, lack of public support, and minimal impact on income distribution (Roundtable Weekly, 2023)

Roundtable Spotlight

  • At the American College of Real Estate Lawyers (ACREL) Annual Meeting this week, RER’s Ryan McCormick (SVP & Counsel) and DeBoer highlighted how the One Big Beautiful Bill (OB3) Act supports jobs, economic growth, investment, and avoids harmful tax changes. They also discussed the nation’s housing shortage and the future of Fannie Mae and Freddie Mac.
  • Longtime and revered RER President’s Council member Jay Epstien received the Fred Lane Award for his lifetime of contributions to the real estate legal profession at the ACREL meeting.

McCormick was also a featured speaker on the Engineered Tax Services webinar this week to discuss the OB3 Act and its wide-ranging implications for commercial real estate, including permanent extensions of 100 percent expensing, Opportunity Zone incentives, affordable housing credits, and other key provisions. (Watch ETS Webinar)

RER and Coalition Urges TRIA Reauthorization

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The Coalition to Insure Against Terrorism (CIAT) submitted a letter this week to the House Financial Services Housing and Insurance Subcommittee ahead of its Sept. 17 hearing on “The Reauthorization of the Terrorism Risk Insurance Act of 2002 (TRIA).” The letter urged lawmakers to act well in advance of TRIA’s scheduled expiration on Dec. 31, 2027. (Letter, Sept. 15 | Watch Hearing)

Why It Matters

  • TRIA has been reauthorized four times—in 2005, 2007, 2015, and 2019—and is set to expire in 2027.
  • The coalition letter warned that letting the program lapse would trigger “a period of profound economic slowdown, posing a very real threat to our economic and homeland security.” (Letter, Sept. 15)
  • House Financial Services Housing and Insurance Subcommittee Chair Mike Flood (R-NE) said Wednesday he intends to propose a clean, eight-year reauthorization of TRIA. (PoliticoPro, Sept. 17 | Press Release, Sept. 17)
  • Without TRIA, businesses from real estate and banking to hospitality and sports, could face significant financing challenges if terrorism insurance becomes unavailable or unaffordable. (Letter, Sept. 15)
  • The program has never been triggered, but for nearly two decades has provided the commercial real estate industry with a crucial backstop against losses from external threats.
  • An RER survey cited in the letter found that more than $15 billion in property transactions stalled or were cancelled in the 14 months between 9/11 and TRIA’s passage, underscoring the economic damage caused by the absence of terrorism insurance.

Hearing Highlights

  • Members of the committee stressed the need to reauthorize TRIA, highlighting its role in sustaining a functioning insurance market and protecting the broader economy.
  • “TRIA’s value is not just in direct responses to terrorism events. The program makes it easier to have an operating market where entities can purchase insurance that covers terrorism risk, and a well-functioning insurance market makes it possible for entities of all kinds to purchase insurance against terrorism risks,” Subcommittee Chair Flood said.
  • House Financial Services Committee Chairman French Hill (R-AR) said, “It’s crucial we take the necessary steps to reauthorize TRIA in addition to enhancing the program’s operations to better protect our economy and strengthen our national security.” (Press Release, Sept. 17)
  • During the hearing, Rep. Ritchie Torres (D-NY) underscored the stakes, stating that without TRIA there would be no financing—or far less financing—of projects. “Without TRIA, there would be no operational terrorism risk insurance market, and without TRIA, few businesses in America could survive a catastrophic terrorist event,” Rep. Torres said. (Watch Hearing)
  • Michelle Sartain (Marsh McLennan), testified during the hearing that TRIA “has been a model public-private partnership,” remains essential for insuring against catastrophic risks, and warned that uncertainty around reauthorization would ripple through the economy, affecting hiring and investment. (Insurance Journal, Sept. 17)

Background on TRIA

  • Enacted in November 2002, TRIA was created in the wake of 9/11 to stabilize insurance markets after private insurers began excluding terrorism coverage from policies.
  • The program provides a system of shared public and private compensation for certain insured losses from a certified act of terrorism.
  • TRIA operates at virtually no cost to taxpayers, thanks to its recoupment mechanism, and continues to ensure market stability amid persistent threats.

RER’s Advocacy

  • Since 9/11, RER has been at the forefront of efforts to secure terrorism risk coverage for American businesses.
  • RER also helped establish CIAT, a broad coalition of commercial insurance consumers formed immediately after 9/11 to ensure that businesses could obtain comprehensive and affordable terrorism insurance. (CIAT Talking Points on TRIA Reauthorization)

RER will continue to work with CIAT and policymakers to ensure a long-term reauthorization of TRIA before its scheduled expiration in 2027.

DeBoer Spotlights CRE Priorities, Calls for Unity at Connect Apartments 2025

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(L-R): Hessam Nadji (Marcus & Millichap), Barry Altshuler (Equity Residential), Tom Bannon (California Apartment Association), Jeffrey DeBoer (Real Estate Roundtable), Daniel Ceniceros (Connect Media)

At Connect Apartments 2025 in Los Angeles this week, Real Estate Roundtable (RER) President and CEO Jeffrey DeBoer delivered the keynote Q&A session, outlining top legislative and regulatory priorities in the coming months.

Remarks

  • His remarks covered implementation of new tax rules on bonus depreciation and expensing, expansion of the Low-Income Housing Tax Credit, policies to encourage new housing supply, efforts to enhance energy grid access, and preparation for the scheduled 2027 expiration of the Terrorism Risk Insurance Act (TRIA).
  • Recognizing that his remarks came on Sept. 11, DeBoer emphasized the broader role of industry leaders in fostering collective action.
  • “For the past 24 years, our industry and its leaders have supported individual, business, and policy actions to respond to and prevent terrorism. Today we face a new reality that also requires a collective response,” he said.
  • He continued, “Our personal, social, and political discourse clearly has spiraled in a very dangerous direction. Many are now calling on political leaders to tone down their divisive rhetoric. We agree. But we also strongly believe that political leaders should not act alone. The Real Estate Roundtable, and our leaders, now urge that the millions of people in our industry work to find boundaries to inciteful rhetoric by rejecting actions and language that vilify and denigrate those whose views differ from our own.”

Next Wednesday, the House Financial Services Housing and Insurance Subcommittee will hold a hearing on “The Reauthorization of the Terrorism Risk Insurance Act of 2002.” RER will continue to engage on TRIA renewal and related policy issues.

HUD Innovative Housing Showcase Highlights Affordability and Need for Reform

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Housing affordability remained a central issue in Washington this week, with congressional hearings, a special Housing Showcase event, fireside chats, and the introduction of new housing legislation all contributing to the increasing momentum for reform.

HUD Innovative Housing Showcase Highlights Market Solutions

  • This week also marked the return of the Department of Housing and Urban Development’s (HUD) Innovative Housing Showcase on the National Mall in Washington, D.C., which ran from Sept. 6-10.

  • The event featured model homes, manufactured and 3D-printed structures, and new building technologies aimed at reducing construction costs, expanding supply, boosting efficiency, and spotlighting public-private partnerships. (HousingWire, Sept. 5)

  • Coinciding with the event, Rep. Mike Flood (R-NE), chairman of the House Financial Services Subcommittee on Housing and Insurance, and Rep. Emanuel Cleaver (D-MO) introduced the Streamlining Manufactured Housing Standards Act. (HousingWire, Sept. 10)

  • The bipartisan bill seeks to remove regulatory uncertainty, preserve affordability, and promote manufactured housing as a scalable solution to the nation’s housing shortage.

Fireside Chat with Chairman Scott and Secretary Turner

  • On Sept. 9, as part of the Housing Showcase, Senate Banking Committee Chairman Tim Scott (R-SC) joined HUD Secretary Scott Turner for a fireside chat to discuss housing priorities and the Renewing Opportunity in the American Dream (ROAD) to Housing Act. (Press release)

  • Sec. Turner underscored the importance of working in coordination with the private sector. “Public-private partnerships are key to overcoming the housing issue we have in our country,” said Sec. Turner. “We want to do the best job we can from a HUD standpoint to work with our private-sector partners to bring about solutions for the American people.” (Watch Discussion)

  • Meanwhile, Sen. Scott highlighted the ROAD to Housing Act as proof that Republicans and Democrats can come together on housing policy. “It started off as my bill, but it became our bill… We got every member on the left and every member on the right to have a piece of the pie.”

  • The ROAD to Housing Act was unanimously approved by the Senate Banking Committee in July, and now awaits a vote in the Senate.

Industry Urges Cost-Effective Energy Policies at Hearing on Housing

  • On Wednesday, the House Energy and Commerce Subcommittee on Energy held a hearing titled “Building the American Dream: Examining Affordability, Choice, and Security in Appliance and Buildings Policies,” to assess the impact of federal energy regulations on housing costs. (Watch hearing)

  • National Association of Home Builders (NAHB) Chairman Buddy Hughes testified that restrictions on energy choice, appliance standards, and mandates on energy codes are making new homes less affordable for most buyers.
  • “Our members are on the front lines of an affordability crisis. Seventy-five percent of households can’t afford a median-priced new home, and half the renters in this country spend over 30 percent of their income on housing costs. New Washington mandates will only make this crisis worse,” said Hughes. (NAHB Testimony)

Looking Ahead

  • The Federal Reserve will decide next week whether to reduce interest rates, which could bring much-awaited relief from elevated home borrowing costs. (Realtor.com, Sept. 11)
  • Meanwhile, reports suggest that President Trump may declare a national housing emergency this fall. Treasury Secretary Scott Bessent confirmed that “everything is on the table.” (Fox News, Sept. 10 | Realtor.com, Sept. 10)

RER will continue to engage with policymakers and industry leaders to promote bipartisan legislation and regulatory reforms that expand the housing supply and improve affordability.

Roundtable Releases 2025 Annual Report

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The Real Estate Roundtable (RER) is pleased to share our 2025 Annual Report, A New Era for America’s Buildings: Policy to meet increased energy demands, new technology, and evolving living and working environments.

Roundtable Leadership

  • This year’s report highlights how RER’s engagement drove policy wins in tax, capital and credit, housing, energy, and homeland security, amid one of the most intense legislative years in recent memory.
  • It also underscores commercial real estate’s vital role in powering jobs, growth, and communities nationwide, while ensuring our industry’s trusted voice is heard at the highest levels in Washington.
  • “The pace and complexity of policy this past year has been unprecedented, requiring rapid and well-coordinated responses,” said Jeffrey DeBoer, RER President and CEO. “Thanks to the engagement and expertise of our members, policy committees and national real estate partners, we have met each legislative challenge with substance, speed and credibility. I believe the past 12 months have been among the most challenging and most successful in our history.”
  • “In the year ahead, we will continue to evolve how we communicate our mission, align our membership with the future of the industry and focus on the most urgent issues,” said Kathleen McCarthy, RER Chair and Global Co-Head of Blackstone Real Estate. “Real estate anchors our communities and touches every part of American life—from where people live and work to how businesses grow. As the nation faces a housing crisis and urgent energy challenges, public policy must support a strong, resilient real estate sector that drives solutions, fuels economic growth and improves quality of life and opportunity for all.”

Explore the 2025 Report

  • RER’s FY2025 Annual Report details the organization’s mission and recent activities, and offers potential policy solutions to today’s pressing and far-reaching industry challenges, including:

  • Intro — featuring Q&A with Kathleen McCarthy and Jeffrey DeBoer

Printed copies of the Annual Report are currently being mailed to members. If you would like additional copies, please email agrenadier@rer.org

Roundtable Urges First Circuit Court of Appeals to Preserve Employment Tax Exemption for Limited Partners

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The Real Estate Roundtable (RER) filed an amicus brief last month with the First Circuit Court of Appeals in Denham Capital Management LP v. Commissioner, a case that challenges the IRS’s restrictive interpretation of the “limited partner exception” from self-employment (SECA) taxes under section 1402(a)(13) of the tax code. (Amicus Brief, Aug. 15)

Why It Matters

  • Income-producing real estate—rental housing, neighborhood shopping centers, office buildings, etc.—is predominantly owned and operated in partnership form. In 2022, there were over 2.2 million real estate partnerships in the United States, with nearly 9.6 million partners.
  • The Self-Employment Contributions Act imposes Social Security and Medicare taxes on net earnings from self-employment. The SECA tax rate on earnings above $250,000 is 3.8%. While the tax applies to a broad range of trade or business income, Congress expressly exempted limited partners from SECA in the Social Security Amendments of 1977.
  • Legislative proposals (including the House version of the Build Back Better Act) and proposed regulations have attempted unsuccessfully to extend the 3.8% SECA tax or the 3.8% net investment income tax to limited partners.
  • More recently, the IRS has undertaken an aggressive effort to redefine what it means to be a limited partner by challenging taxpayers and litigating the issue in several cases before the Tax Court.

Roundtable View

  • Real estate partnerships have relied for decades on longstanding tax law as it relates to limited partners and the SECA exception.
  • In Denham and related cases, the Tax Court “imposed a judge-made test and concluded contrary to decades of established state law that a limited partner must be a ‘passive investor,’” notes the Roundtable amicus brief.
  • On the contrary, “state law in the run-up to the 1977 Amendments tells an entirely different story—one that remains true today: limited partners have routinely provided key business services to their partnerships without losing their limited liability status.” (Amicus Brief, Aug. 15)
  • The Tax Court’s 2023 Soroban ruling wrongly introduced a federal “passivity” requirement that is unmoored from statute, legislative history, and Treasury’s own prior interpretations. (TaxNotes, Sept. 10)
  • “A shift in the federal tax definition of a limited partner could alter underlying partnership economics, increase tax burdens, and create significant uncertainty for real estate and other pass-through businesses,” said Real Estate Roundtable President and CEO Jeffrey DeBoer. “Such changes need to go through Congress and withstand legislative scrutiny.”

Background

  • The Roundtable amicus brief was prepared by President’s Council Member Isaac Wheeler and his colleagues at Sullivan & Cromwell LLP, in consultation with RER’s Tax Policy Advisory Committee (TPAC).

Next Steps

The First Circuit’s decision in Denham could have nationwide implications for how partnerships are treated under SECA. A ruling against the Tax Court’s passive investor test would reinforce state law’s central role in defining “limited partner” status.