Housing Industry Panicking About Tax Reform
We’ll start with the low-income housing tax credit which is the one I’m giving you. Protect the Lease connects the low-income housing credit to “ensuring housing affordability”. I wanted to do a little more than just looking at Forms 990 to assess how credible NAA and NMHC were. What I did was ask Mike Novogradac. Mike built a substantial national CPA firm (over twenty offices- ranked about 30 nationally) around the Low Income Housing Tax Credit. Mike assured me that the sponsors of Protect the Lease are substantial and credible.
And concern about the LIHTC is well grounded. Even the threat of tax reform has had an impact on the LIHTC. The credit is rationed by state population and assigned to developments by state housing agencies. Developers, in effect, sell the credit, which is spread over ten years, mostly to corporations. Concerns about tax reform, such as lower rates, have already affected the appetite of corporations for the credit pushing down the development dollars that credit allocations yield.
Motion To Stop IRS From Examining Marijuana Dispensary Up In Smoke
Last week I wrote about The Green Solution, at least by its own account Colorado’s #1 Marijuana dispensary. It was resisting an IRS summons based on the notion the Code Section 280E, which denies marijuana sellers ordinary and necessary business deductions, inappropriately puts the IRS in the drug busting business. Things did not go well for The Green Solution as the Tenth Circuit ruled that the anti-injunction act applied allowing the IRS to proceed. Now another shoe has dropped.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.