Why Should Congress Keep the Business Interest Deduction? Two Professionals Weigh In
With the congressional August recess behind us, lawmakers are reconvening in Washington, D.C., with an ambitious agenda that includes tax reform, which could have a profound impact on the apartment housing industry’s ability to meet housing demands and serve our residents.
NAA is paying close attention to pending tax overhaul legislation, especially provisions focused on the business interest deduction. The ability to deduct interest on debt from taxes is critical to enabling our members to assume the risk involved with developing apartment homes.
Jon Barrett, Vice President of Property Management, Better Housing Coalition, weighs in with a straightforward business perspective. With the business interest deduction, Barrett says “the five developments I had this year may become six next year…If that deduction goes away, the five that I had this year may become zero next year.”
The stakes couldn’t be higher for our industry in comparison to other business sectors. If not done right, tax reform could create a ripple effect that impacts families, communities, businesses and the U.S. economy for decades to come.