NAA and NMHC Signify Support for 20 Percent Tax Deduction for Pass-Through Businesses
NAA and NMHC joined a coalition of over 100 organizations supporting legislation introduced by Representative Jason Smith (R-MO) and Senator Steve Daines (R-MT) that would make permanent the 20 percent tax deduction for pass-through businesses enacted as part of the Tax Cuts and Jobs Act.
The pass-through deduction benefits flow-through entities (i.e., LLCs, partnerships, S Corporations and REITs) that dominate the multifamily industry and lowers the top tax rate imposed on investors in such entities to 29.6 percent from 37 percent. Unless it’s extended, this incentive will expire for taxable year’s beginning after 2025.
NAA and NMHC strongly support making permanent the 20 percent deduction, particularly given that C corporations are taxed at a 21 percent rate.