The Mann Report quoted Tax Partner Kurt Koegl in an article about the American Families Plan and its impact on commercial real estate.
The Mann Report
By Debra Hazel
“The change on the top rate to 39.6% and the elimination of the capital gains rate for families making over $1 million may further exacerbate the real estate industry,” said Kurt Koegl, a partner at Marcum LLP. “Small real estate investors may only make a hundred thousand per year in rental, management or fee income. However, in the year of a property sale, that income may spike over $1 million proposed capital gain phase-out cap, making the entire amount of gain on the sale of the property subject to the highest ordinary rate. This would significantly reduce the after-tax return to the owner of the property.”