Located in Virginia's Fairfax County near TSA's new headquarters, Kingstowne Towne Center is surrounded by 5,200 homes, four commercial office buildings, and a planned multifamily development, and is part of a one million-square-foot regional retail node that attracts approximately 8.3 million visits annuallyamongst the most visited retail destinations in Virginia.

The combined property is 97% leased and features a diversified tenant lineup that includes grocery anchors Safeway and Giant, national retailers T.J. Maxx, Ross and HomeGoods, and fast-casual concepts &pizza and Cava, among others. Federal Realty anticipates increasing the asset's valueover time through remerchandising and incremental capital investment. Kingstowne Towne Center is comparable to other large, market-dominant Federal Realty assets such as the double grocery-anchored center, Barracks Road.

"Kingstowne Towne Center has afforded us a rare opportunity to own 45 acres of land in one of the country's most desirable markets," said Jeff Berkes, President and Chief Operating Officer for Federal Realty. "The large property, which boasts attractive demographics and significant barriers to entry, is a valuable addition to our expanding Northern Virginia portfolio and further demonstrates our corporate commitment to investing in value-enhancing acquisitions."

The Kingstowne acquisition is the latest addition to Federal Realty's growing investment in its Northern Virginia portfolio which includes the recent acquisitions of Twinbrooke Shopping Centrein Fairfax and Chesterbrook in McLean and the recent renovation of Birch & Broadin Falls Church. With the addition of Kingstowne Towne Center, Federal Realty owns and operates over 4million square feet of real estate in Virginia.

AboutFederal RealtyFederal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,100 tenants in 25 million square feet, and approximately 3,400 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit http://www.federalrealty.com.

Investor Inquiries: Leah Andress Brady Vice President, Investor Relations 301.998.8265 [emailprotected]

Media Inquiries: Brenda Pomar Director, Corporate Communications 301.998.8316 [emailprotected]

SOURCE Federal Realty Investment Trust

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Federal Realty Investment Trust Announces Acquisition of Kingstowne Towne Center in Northern Virginia - PR Newswire

Raj Dhamodharan Mastercards Global Head of crypto and blockchain believes that digital currencies pose no threat at all. Moreover, he classified them as probably the most mature investment asset.

The payment services giant Mastercard is among the companies seeking to dive deeper into the digital asset universe. Throughout the past several months, the firm has launched numerous initiatives to promote the industry and introduce crypto-related opportunities to its customers. Last October, it permitted all banks on its network to provide bitcoin services.

The man spearheading Mastercards crypto efforts is Raj Dhamodharan. In a recent interview, he doubled down on his companys bullish stance, saying digital assets should not be considered a threat. Investors protection is highly important, and Mastercard is always looking for providing choice in a safe and simple manner, he assured.

Dhamodharan went further, arguing that cryptocurrencies nature is unique as it is a package of multiple technologies. From an investors point of view, it is probably the most mature investment asset, he opined.

Touching upon bitcoin, the executive claimed that it is not just a currency but much more:

Bitcoin is not just about the currency. Its also about the chain. Its also about the cryptology behind it and the decentralization and all that.

Dhamodharan also spoke highly of non-fungible tokens, describing them as a great invention. He ranked them as the next mature investment asset class after cryptocurrencies:

The next thing to come out after these asset classes in the space is NFT. NFT is a great invention, and it is being applied to art at the moment. For creators, it opens up opportunities for them to sell their creations in unprecedented ways.

In January, the payment services provider collaborated with Coinbase to promote the NFT sector. The exchange raised hopes that the partnership will unlock new ways for users to purchase digital collectibles using their Mastercard cards:

Thanks to our work with Mastercard, well be able to provide a better customer experience on Coinbase NFT, and plan on working to find ways to bring this opportunity to the broader ecosystem through Mastercards scale and global network.

Earlier this month, the fintech corporation teamed up with Nexo to introduce the first cryptocurrency card in Europe that enables clients to spend without selling their holdings.

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

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Crypto is Probably the Most Mature Investment Asset, Says Mastercard Exec - CryptoPotato

US Transportation Secretary Pete Buttigieg and Rep. Cindy Axne (D-Iowa) held a press conference Thursday to discuss the bipartisan Infrastructure Investment and Jobs Act, what it has done for Iowaand other rural areasand what it will do in the future.

Highlighting the potential for new opportunities such as expanded partnerships at airports, job creation, and how Iowas infrastructure could be made safer and more effective, Axne celebrated the bill.

All told, this law includes more than 375 programs that rural communities across the third districts are eligible for and its expected to invest more than $5 billion in Iowa, Axne said. Our rural areas are going to benefit tremendously from this and thats why Im so excited about this law.

The bill became law in November 2021. It passed with the only Iowa support coming from Axne and Sen. Chuck Grassley, while Iowas other four federal legislators voted against the legislation.

Axne said investment in good infrastructure can mean the difference in a long commute filled with detours, or a more direct, safer route. Same goes for the roads that ship Iowas goods.

Over the next five years, Iowa will receive the money for federal and non-federal highways, as well as bridges, trails, airports, water lines and support for electric vehicles.

The money is being distributed to states, who are then able to direct the money toward project priorities. For example, which roads and bridges will come first.

Ill tell you from our departments perspective, weve got a lot of focus on safety, Buttigieg said. When you have these bridges, for example, in need of repair, a lot of projects will, I think, make their way to the top of the list for that reason.

He also said economic strength should be another indicator, both in terms of construction job creation and long-term effects for the states economy, such as shipping goods out.

The point of this is to benefit communities, Buttigieg said. You cut through the politics and its about making sure we actually get things done.

Earlier this month, the White House released a playbook which provides a guide to rural communities for when, where and how to apply for funds. The playbook also has a guide for the types of projects that qualify for the funding.

In January, Axne announced funding for repairs to structurally deficient bridges. In December 2021, funding for roads and bridges also came out. As did funding for airports across the state and for water infrastructure such as replacing lead pipes.

The Iowa Department of Transportation in January also approved changes to its 2022-26 Iowa Transportation Improvement Program that are possible because of the Infrastructure Investment and Jobs Act.

Those include 14 additional pavement rehabilitation or replacement projects and four safety projects.

In all, the bipartisan Infrastructure Investment and Jobs Act is meant to provide for high-speed internet, improving rural transportation, fixing roads and bridges, funding rural water projects, upgrading electricity infrastructure, and improving resiliency against climate change-fueled natural disasters.

It will make the difference in so many communities to ensure they have success, Axne said. This is vital to the growth of rural Iowa and urban Iowa. Normally we would fall on the back end of getting as much infrastructure funding, but with a windfall like this its going to take us a long way.

Nikoel Hytrek4/21/22

Iowa Starting Line is part of an independent news network and focuses on how state and national decisions impact Iowans daily lives. We rely on your financial support to keep our stories free for all to read. You can contribute to us here. Also follow us on Facebook and Twitter.

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Axne And Buttigieg Highlight Infrastructure Bill's Investment In Rural Iowa - Iowa Starting Line

CHARLESTON, W.Va. Today, U.S. Senators Shelley Moore Capito (R-W.Va.) U.S. and Joe Manchin (D-WV), and Representative David McKinley (R-W.Va.-01) announced $14,100,280 from the bipartisan Infrastructure Investment and Jobs Act (IIJA) through the U.S. Department of Agriculture (USDA) for twelve West Virginia projects. This funding will bolster flood protection, upgrade dam infrastructure and protect water quality across the state.

As ranking member of the Senate Environment and Public Works Committee, I advocated to make improving water quality for West Virginians a priority in the bipartisan Infrastructure Investment and Jobs Act, Senator Capito said. This funding will not only go toward key projects across West Virginia to ensure a safe water supply, but also to upgrade watershed and flood control structures in communities that need it most. West Virginia continues to benefit from the bipartisan infrastructure bill, and Im proud to make another announcement that will help improve our cities and towns today.

In order to ensure all West Virginians have reliable access to clean water, we must continually update and improve our water infrastructure throughout the state, Senator Manchin said. I successfully fought to include funding for water infrastructure upgrades across West Virginia in our bipartisan Infrastructure Investment and Jobs Act, and I am pleased USDA is investing more than $14 million for twelve West Virginia watersheds to ensure proper water quality, improve dams and strengthen flood prevention in our communities. As a member of the Senate Appropriations Committee, I will continue to advocate for funding to address the infrastructure needs of the Mountain State.

Flooding has devastated countless communities across West Virginia, not only impacting residents who live in flood prone areas, but also limiting the potential for economic development. Businesses are not likely to come to a region that experiences significant flooding, plain and simple, Representative McKinley said. That is why this announcement of $14 million from the infrastructure bill to kickstart flood prevention and water protection projects is so important for West Virginia. This funding will support a dozen projects, including the Elk Creek Watershed flood control project in Harrison County and will provide enhanced flood protections for the New Creek dam in Mineral County. Upgrading flood protection and dam infrastructure will restore confidence in these communities, attracting businesses and good jobs, ensuring a better quality of life for the people of this state.

In March of this year, the lawmakers announced $6.3 million from the bipartisan IIJA through the USDA for 22 West Virginia watersheds and flood protection sites.

Individual projects listed below:

# # #

Continued here:
Capito, Manchin, McKinley Announce More Than $14 Million from Bipartisan Infrastructure Investment and Jobs Act for West Virginia Watersheds - Shelley...

FOR IMMEDIATE RELEASE

April 20, 2022

Contact: Press@michigan.gov

Gov. Whitmer Calls for Federal Investment to Protect 600 Jobs, Lower Energy Costs, Shore up Michigans Energy Needs

New Civil Nuclear Credit program could help Palisades facility in Covert Township stay open

LANSING, Mich. Governor Gretchen Whitmer today sent a letter to the U.S. Department of Energy after they published guidance on the first round of funding for the Civil Nuclear Credit (CNC) program. The governor urged the deployment of federal resources from the CNC to keep Palisades, a nuclear energy facility in Covert Township, open. The Southwest Michigan plant employs 600 Michiganders in good-paying jobs, is critical to the regional economy, and provides over 800 megawatts of clean energyenough to power around 800,000 Michigan homes.

Keeping Palisades open is a top priority, said Governor Gretchen Whitmer. Doing so will allow us to shore up Michigans energy supply to prevent price spikes on working families and small businesses, make Michigan more competitive for economic development projects bringing billions in investment, protect hundreds of good-paying jobs for Michiganders, and meet our climate goals. My administration will support an application for funding from this new federal program to keep Palisades open, and I urge the companies involved to think creatively and optimistically about how to leverage this opportunity. Together, we can protect 600 high-paying careers, support over 1,100 jobs in the area, and shore up $363 million in annual, regional economic development. Getting this done will help us continue growing our economy, lowering energy costs for families, and boosting clean energy production in Michigan, which is critical to achieving energy independence.

The full letter is available here:

Palisades

Palisades is a nuclear energy facility in Covert Township with a license to operate until 2031. Its currently owned by Entergy and the power is purchased by Consumers Energy. Palisades provides over 800 megawatts of clean energy to Michiganenough to power 800,000 Michigan homes. This is a union facility supporting 600 employees making an average of $117,845. Palisades is currently in the process of being decommissioned with a shutdown date of May 31, 2022, when its current fuel supply runs out. After shutdown, the plant is set to be sold to Holtec Decommissioning International with a closing date of no later than June 30, 2022.

Civil Nuclear Credit Program

The bipartisan Infrastructure Investment and Jobs Act (IIJA) included $6 billion for the CNC to prevent the premature retirement of existing nuclear plants. The program is available for plants that would otherwise retire and are certified as safe to continue operations. The State of Michigan has had numerous conversations with the U.S. Department of Energy, Nuclear Regulatory Commission, Entergy, Holtec, potential owners, operators, and power purchasers, and the plants employees on how to utilize the CNC to prevent Palisades from early closure, protect 600 jobs, and shore up Michigans clean energy supply.

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Whitmer Calls for Federal Investment to Protect Jobs and Shore up Energy Needs - Michigan (.gov)

The Jacksonville Jaguars threw a wrench at the wide receiver market and didnt make many teams happy when they gave Christian Kirk a four-year deal worth $72 million. While its too early to tell if things are going to work out the way they envision, its fair to say the Jags are pleased with the early returns on their investment.

Jaguars offensive coordinator Press Taylor recently appeared on the Happy Hour and touched on several topics, including his relationship with Trevor Lawrence, how he will work with his staff, and the teams additions in free agency, including Kirk. When asked what the wide receiver brings to the offense, Taylor said the biggest thing is his versatility to line up all over the formation and win outside. He also praised his speed and described him as a great decision-maker. The offensive coordinator added that he likes his demeanor.

You know, probably something I didnt know about him was his demeanor. Weve been around each other for a week. Hes got a great demeanor about himself. He again asks great questions, similar to the quarterbacks where I think that makes up for a lot of less time on the grass, where they have the ability to sit and communicate in a meeting room and get on the same page and he brings out that element. He brings big plays, [hes a] dynamic player. Hes good with the ball in his hands. Hes able to win in a number of different ways which is intriguing for us.

Host J.P. Shadrick then noted that he hadnt heard someone refer to a widout as a decision-maker and asked Taylor what he meant. The offensive coordinator says part of that is the kind of questions Kirk makes, Can I adjust this way versus that?, Do you expect me to do this? Heres the whole clip in case you want to give it a listen.

A player is worth what a team is to pay him and while Kirks past production might not have been on par with the contract the Jaguars gave him, they are the ones that set the amount. They paid him not for what he has done but because of what he can do for them and if he lives up to expectations, will observers be able to say general manager Trent Baalke overpaid for him?

Its true that Kirk hasnt had a 1,000-yard season but its also worth noting that he wasnt the top target in the Arizona Cardinals offense and he thrive once head coach Kliff Kingsbury started to use his skillset correctly (using him more in the slot). The Jags saw what he did last season and believe he can take the next step.

The Jaguars needed to get Trevor Lawrence as many weapons as possible this offseason and while they had to pay a premium for Kirk, it will be worth it if he becomes a reliable target, helps them score more points, and plays a role in the young passers development in 2022.

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Jaguars pleased with investment in WR Christian Kirk - Black and Teal

If you're interested in investing in real estate, there are different sectors you can look at. Industrial real estate is huge right now, for example, due to an uptick in digital sales fueled by the pandemic. And in the coming years, as the world goes increasingly digital, data center demand could soar.

But if you're looking for a solid real estate investment, it pays to look at healthcare REITs, or real estate investment trusts. Here are a few reasons why.

Americans are living longer these days, which means seniors will soon start to make up a larger portion of the population. According to the Urban Institute, the number of Americans aged 65 and older will more than double over the next four decades, reaching 80 million in 2040. And while many older Americans prefer to age in place, that's not always feasible.

Image source: Getty Images.

That's where senior living facilities come in. In the coming years, there could be a massive uptick in demand for skilled nursing centers, nursing homes, and assisted living communities, all of which fall under the healthcare umbrella. If you invest now, ahead of that boom, you might really set yourself up to profit nicely.

The pandemic taught many people not to take their health for granted. In the coming years, we could see an uptick in patients seeking out care not just for serious matters but also for minor issues.

Plus, there could be an uptick in patients prioritizing preventive care. As a result, we could see increased demand for urgent care and wellness centers, as well as diagnostic centers.

Different real estate sectors carry varying levels of risk. When economic conditions take a turn for the worse, travel and leisure spending can taper off. That could really hurt hospitality and retail REITs.

Healthcare, on the other hand, is pretty much a recession-proof industry. Even if economic conditions sour, people will still have medical needs to tend to. And many will no doubt prioritize medical spending over leisure spending. That makes healthcare a more solid bet if you're looking to invest in real estate but want to minimize your risks.

Investing in healthcare REITs may not make you rich overnight -- and you shouldn't expect it to. But in time, you could end up growing a lot of wealth by investing in healthcare real estate.

Of course, you should know that there are risks associated with healthcare REITs. For one thing, there's oversupply to think about. If the market gets too saturated with healthcare facilities, some of those properties could end up sitting vacant for extended periods of time. Furthermore, regulatory changes could make different healthcare facilities more costly to operate, thereby eating into profits.

But ultimately, when it comes to healthcare REITs, the upside really does outweigh the downside. And so, it pays to think about adding healthcare real estate to your portfolio.

See more here:
3 Really Good Reasons to Invest in Healthcare Real Estate - The Motley Fool

Following an agreed investment by European investment company Gimv, Pharming's minority stake of 43.85% in BioConnection will reduce to 22.98%.

As a result of this transaction, Pharming will receive one-off US$ 7.5 million (EUR 6.9 million) net cash proceeds.

Pharming continues to support BioConnection to accelerate its growth strategy together with Gimv and its other shareholders.

LEIDEN, The Netherlands, April 22, 2022 /PRNewswire/ -- Pharming Group N.V. ("Pharming" or "the Company") (Euronext Amsterdam: PHARM), (NASDAQ: PHAR) announces a change in its minority holding in BioConnection B.V, a contract development and manufacturing organization (CDMO) and the long-time fill and finish partner in the production of Pharming's product RUCONEST. In April 2019, the company announced it had invested 4.1 million to acquire a 43.85% stake in BioConnection through its 100% subsidiary Pharming Technologies B.V.

Following receipt of an offer for all shares in BioConnection by Gimv, a European investment company listed on Euronext Brussels, the existing shareholders (including Pharming) reached agreement with Gimv today on the sale of all issued and outstanding shares to a new holding company incorporated by Gimv for BioConnection, followed by a partial re-investment by existing shareholders of the purchase price in the share capital of that new holding company.

As a result of the transaction, the minority stake held by Pharming in BioConnection will reduce to 22.98% and Pharming will receive one-off US$ 7.5 million (EUR 6.9 million) net cash proceeds in Q2 2022.

Pharming will continue to support BioConnection to accelerate its next stage of growth to further invest in its organization and infrastructure to increase the production capacity.

Chief Executive Officer, Sijmen de Vries, commented:

"We are pleased to continue our investment into BioConnection, as they have been an excellent partner for Pharming for many years. We look forward to continuing to support BioConnection as it continues to grow, and to work with existing shareholders and welcome Gimv as a new shareholder in BioConnection."

About Pharming Group N.V.

Pharming Group N.V. (EURONEXT Amsterdam: PHARM/Nasdaq: PHAR) is a global biopharmaceutical company dedicated to transforming the lives of patients with rare, debilitating, and life-threatening diseases. Pharming is commercializing and developing an innovative portfolio of protein replacement therapies and precision medicines, including small molecules, biologics, and gene therapies that are in early to late-stage development. Pharming is headquartered in Leiden, Netherlands, and has employees around the globe who serve patients in over 30 markets in North America, Europe, the Middle East, Africa, and Asia-Pacific. For more information, visit http://www.pharming.com.

Forward-looking Statements

This press release contains forward-looking statements, including with respect to timing and progress of Pharming's preclinical studies and clinical trials of its product candidates, Pharming's clinical and commercial prospects, Pharming's ability to overcome the challenges posed by the COVID-19 pandemic to the conduct of its business, and Pharming's expectations regarding its projected working capital requirements and cash resources, which statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to the scope, progress and expansion of Pharming's clinical trials and ramifications for the cost thereof; and clinical, scientific, regulatory and technical developments. In light of these risks and uncertainties, and other risks and uncertainties that are described in Pharming's 2021 Annual Report and the Annual Report on Form 20-F for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission, the events and circumstances discussed in such forward-looking statements may not occur, and Pharming's actual results could differ materially and adversely from those anticipated or implied thereby. Any forward-looking statements speak only as of the date of this press release and are based on information available to Pharming as of the date of this release.

Inside Information

This press release relates to the disclosure of information that qualifies, or may have qualified, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

For further public information, contact:

Pharming Group, Leiden, The NetherlandsSijmen de Vries, CEO: T: +31 71 524 7400

FTI Consulting, London, UK Victoria Foster Mitchell/Alex ShawT: +44 203 727 1000

FTI Consulting, USA Jim PolsonT: +1 (312) 553-6730

LifeSpring Life Sciences Communication, Amsterdam, The NetherlandsLeon MelensT: +31 6 53 81 64 27E: [emailprotected]

Logo - https://mma.prnewswire.com/media/1778344/Pharming_Group_NV_Logo.jpg

The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. Whilst every effort is made to ensure the accuracy of our services, such releases are not actively monitored or reviewed by PR Newswire or its partners and under no circumstances shall PR Newswire or its partners be liable for any loss or damage resulting from the use of such information. All information should be checked prior to publication.

SOURCE Pharming Group N.V.

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Pharming announces change in its holding in BioConnection following a substantial investment by new investor - PR Newswire

As Yogi Berra said, Its dj vu all over again. A year ago, we described the portion of the Biden Administrations proposed tax plans that would have had a significant impact on the real estate industry. At the time the new administration was trying to follow through on its campaign promises to reform personal income taxes in the proposed American Families Plan. Our particular focus was the potential for significant increases in capital gains tax on appreciated real property for owner/investors and their estates through both rate changes and the repeal of like-kind exchanges. Last fall, the House Committee on Ways & Means issued a new summary of the tax proposals as part of a budget reconciliation bill. Many of the items in the Administrations initial plan (including the capital gains proposals) were not included in this summary, and the real estate industry breathed a collective sigh of relief. After several months of negotiations, the bill did not pass in the Senate.

The Administrations 2023 budget, as outlined in the Treasury Departments Green Book,[1] contains many of the same proposals that were in the American Families Plan, some with new provisions. While there does not appear to be sufficient support for these tax increases in Congress, real estate market participants should closely monitor both the progression of the proposed reforms and ongoing Congressional and White House negotiations. Aside from revenue raising, the proposal also includes additional funds and incentives to promote affordable housing and community development. This article focuses on the most current set of proposals that would impact real estate ownership and investing.

Renewed Focus on Capital Gains Taxes and Like-Kind Exchanges

As mentioned, the group of proposals in the budget plan that would likely most impact real estate market participants involves the taxation of capital gains. The Administration once again is suggesting that, beginning in 2023, the federal long-term (assets held more than one year) capital gains tax rate be brought in parity with ordinary income rates, meaning a doubling from the current rate of 23.8% to 40.8%, including the 3.8% net investment income (NII) tax, for taxpayers who file jointly with taxable income greater than $1 million. The budget also re-proposes increasing the marginal tax rate for the highest earners (here defined as $450,000 for married couples filing jointly or $400,000 for unmarried individuals) from the current 37% to 39.6%, or 43.4% with the NII tax.

While stated somewhat differently than last year, the budget also brings back the concept of incurring capital gains not only when a property is sold, but also when it is transferred through a gift, by funding a grantor trust, or upon the death of the owner (property transferred to a decedents spouse is exempt from recognizing the gain). A year ago, the proposal included a $1 million per person exclusion from capital gain recognition on property transferred by gift or at death. That provision appears to have been removed and replaced with a $5 million per donor exclusion from gains on appreciated assets transferred by gift during life. In other words, it seems the gains exclusion for unrealized gains in an estate has been removed.

When a gain is realized upon the death of the owner, the gains can be reported either on the estate tax return or a new capital gains return. Last year it was unclear whether the gains tax was deductible from estate taxes. The differentiation of a separate gains form could imply that it is, although it is not explicitly addressed.

In our analyses last year, we expressed concern about liquidity issues for heirs of long-term held real estate, particularly related to family businesses, where the estate may have extremely low bases in the inherited assets and therefore large unrealized gains. Currently, the basis in the assets can be stepped up to current fair market value at the time of death, and the heirs can hold or sell the assets without the burden of the gains tax. However, under the proposed scenario, the step-up in basis becomes moot and a family may have to sell the property to pay the tax. If the property is leveraged and significantly depreciated, the sale proceeds may be insufficient to cover the taxes. Moreover, by being forced to sell the properties, the heirs would then forgo ongoing income and value appreciation. The proposals do allow a 15-year fixed rate payment plan for the tax on appreciated illiquid assets transferred at death. Additionally, the rules provide for an estate to elect not to recognize unrealized gains on certain ongoing family-owned and -operated businesses.

As noted, the recognition of unrealized gains applies to transfers of assets, including interests in properties, during the owners lifetime. Currently, owners and investors can use grantor trusts to move ownership interests to their heirs. The owner, or grantor, sells the property to a grantor trust in which the heirs are beneficiaries and would benefit from the future value appreciation of the assets. That transference of assets from the grantor to the grantor trust is not currently recognized as a sale for income tax purposes (although it is recognized for estate tax). Under the proposed rules, any transfer of assets from a grantor to a grantor trust would be treated as a sale for income tax purposes and any capital gains on the assets would be taxable at the time of the transfer. Effectively, the grantor trust would be treated as a third party rather than an extension of the grantor, limiting the benefit of this estate planning strategy.

The like-kind exchange rules codified in IRC Sec. 1031 allow the deferral of capital gains upon the sale of a property if the proceeds are used to buy another property for equal or greater value. The replacement property must be identified within 45 days of the sale and purchased within 180 days. Of course, there are many complexities to these rules (see The Basics of 1031s). While like-kind exchanges were first entered into the Code in 1921, since the Tax Cuts and Jobs Act of 2017 the rules only apply to real property held for productive use in a trade or business or for investment. As in the American Families Plan, the current proposals limit the deferral of capital gains on investment property to $500,000 per taxpayer ($1 million for married individuals filing a joint return). Accordingly, the potential for deferral of capital gains recognized upon sale, transfer, or death have been curtailed. In combination, increased capital gains tax rates and the partial repeal of the like-kind exchange rules would likely reduce the capital available for future investments in real estate. It should be noted that some deferral of capital gains is still available through investment in qualified opportunity zones, and there is a separate proposal in Congress to enhance the benefits to investors providing capital to underserved communities (see below).

Here is an example of the impact of these proposed rule changes that we provided last year (this hypothetical example excludes any impact of depreciation recapture): A real estate investor buys a small apartment building for $3 million and sells the property in ten years for $7 million. To keep things simple, lets say the investors tax basis was reduced through depreciation and distributions to $2 million at the time of the sale. The gain on sale would then be $5 million. Currently, the investor can pay a gains tax of $1 million (20% of $5 million) and take home $6 million in net proceeds. Or the investor could roll the entire sales proceeds of $7 million into a like-kind exchange (the purchase of another real estate asset) and the payment of gains tax would be deferred until the investor sells the replacement property. Under the current proposal, the gains tax would be $2.2 million (43.4% of $5 million) or the investor could defer $500,000 of the gains through a like-kind exchange. In that case, the investor would put the $500,000 into a new deal, pay federal gains taxes of almost $2 million and take home the remaining $4.5 million.

Carried Interest

The proposal would create a new name for a non-passive interest in an investment vehicle: investment services partnership interest (ISPI). Profits from a real estate venture would be more clearly bifurcated between those earned by passive investors and those earned by active investors who provide services to the investment entity (e.g., deal sourcing, asset management) and own ISPI interests in that deal. Carried interest or promotes are the share of the profits earned by sponsor investors holding ISPIs and providing a service to the investment entity that are predicated upon achieving certain performance hurdles. Currently those interests are taxed as capital gains. The proposal would tax income on ISPI as ordinary income if the taxpayers income from all sources exceeds $400,000. Those same taxpayers would also have to pay self-employment tax on ISPI income. If the taxpayer has both ISPI and passive interests in the venture (say the person holds both general partner and limited partner interests in a partnership), income from the limited partner interests would not be reclassified as ordinary income.

The House proposal last fall made an exception to taxing carried interests as ordinary income when a real estate investment was held at least three years, beginning when substantially all the capital in the investment vehicle was invested. The Green Book does not mention this three-year holding period exception.

Net Investment Income Tax

Last years version of the American Families Plan would have eliminated the exclusion for real estate professionals to pay NII tax, resulting in the requirement to pay an additional 3.8% tax on the taxpayers share of rental income or capital gains on the sale of property in which they materially participate. The current budget proposal is silent on this provision.

Additional Support for Affordable Housing

As we recently described in a separate article, the lack of affordable housing in the United States has significantly worsened during the pandemic. The proposed budget addresses this issue in several ways:

Updates to Qualified Opportunity Zone Rules

While not part of the Administrations budget proposal, it is also important to be aware of potential new legislation pertaining to qualified opportunity zones (QOZs). A bipartisan group of senators and representatives let by Senators Booker and Scott has drafted The Opportunity Zones Transparency, Extension, and Improvement Act to enhance the QOZ program and attract additional capital to underserved neighborhoods across the country. The bill contains the following provisions:

Next Steps

The proposals contained in the Green Book look very familiar by now. Throughout 2022 they did not garner enough votes in Congress to become law. But they are still in play and real estate owners and investors should continue to carefully monitor these proposals as their language will likely continue to change and some may become law at some point. Of course, not knowing the outcome makes investment and estate planning difficult. Industry participants should continue to discuss these new tax proposals with their financial advisors. On a positive note, there may be additional opportunities to invest in affordable housing and community development if Congress passes those aspects of the budget and The Opportunity Zones Transparency, Extension, and Improvement Act.

(1) Information in this article regarding proposed tax law changes are primarily based on the General Explanations of the Administrations Fiscal Year 2023 Revenue Proposals issued by the Department of the Treasury in March 2022.

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The Latest Tax Proposals and Their Impact on Real Estate Investing - EisnerAmper

ATLANTA--(BUSINESS WIRE)--In response to continued client demand for private real estate investments, Homrich Berg (HB) has added real estate industry expert Sarah Hauptman as Director of Real Estate. She joins current HB Principal Ross Bramwell on the real estate sourcing and due diligence team. HB has invested directly in individual real estate properties for over 25 years in HB client portfolios, and has committed over $300 million to direct real estate investments for HB clients during the past five years alone.

With over 15 years of experience in commercial, multifamily and other real estate sectors across industries like industrial and hospitality, Hauptman brings next-level expertise to the dedicated HB investment team. Hauptmans background working with institutional investors in the private real estate space provides a deep network and knowledge that will benefit HB clients looking for private real estate investments. Im eager to leverage my experience in a new way to help expand Homrich Bergs private investments platform, explains Hauptman. Ive worked in the Sunbelt region over the last several years, and Im excited to help clients capitalize on the potentially lucrative opportunities in this growing region.

Additionally, HBs expanded private markets offerings will provide clients an option for potentially hedging against rising inflation. Thomas Carroll, President of Homrich Berg, explains how this mindset and the growing popularity of private investments confirmed the need for adding another real estate expert like Hauptman to the team.

Real estate is an easy to understand, tangible asset, which makes it an attractive alternative investment option to consider, especially down here in the Sunbelt region, explains Carroll. Were excited to have Hauptman join our real estate team and bring her network and skills in the real estate investing space, working hand in hand with our already extensive bench of private investments experts.

Hauptman, an Atlanta native, recently moved back to the region after spending time in Dallas working with E2M Partners, Compatriot Capital and most recently Banner Oak Capital Partners, where she managed industrial assets across the Southeast region.

About Homrich BergFounded in 1989, Atlanta-based Homrich Berg is a national independent wealth management firm that provides fiduciary, fee-only investment management, and financial planning services, serving as the leader of the financial team for our clients, including high-net-worth individuals, families, and not-for-profits. Homrich Berg manages over $10 billion for more than 2,000 family relationships nationwide.

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Homrich Berg Expands Investment Team, Adds Sarah Hauptman as Director of Real Estate - Business Wire