It’s generally been thought the main exit strategy for Wall Street-backed firms that are buying distressed homes to rent them out, is to convert to a REIT and file for an IPO. That attempt to cash-out on the single-family home trade has obvious benefits for the big institutional buyers but risks for retail investors as the math behind the buy-to-rent model becomes increasingly suspect.
Welcome to the top tax and accounting headlines from Reuters and other sources.
* The corporate tax game. Graham Bowley – The New York Times. Despite the widespread support, the campaign for a tax reform overhaul is exposing deep fault lines within the business world that suggest it may fall apart. Link
* Rising tax receipts spark bets on reduced U.S. Treasury sales. Min Zeng – The Wall Street Journal. A surge in tax receipts has reduced the U.S. government’s borrowing needs, fueling speculation that a reduction of sales in notes could be coming for the first time since 2010. Link
* Americans living abroad say U.S. tax laws punishing them. Margaret Collins and Richard Rubin – Bloomberg news. Complexity has increased for Americans abroad with the Foreign Account Tax Compliance Act, enacted in 2010 to combat tax evasion by US taxpayers with assets offshore. Link
Some important tax and accounting events in the week ahead:
Monday, April 29 – Friday, May 3
* Tax Executives Institute federal taxation course. East Lansing, Michigan.
Tuesday, April 30
* D.C. Bar Association session on the taxation of financial derivatives. 12 noon – 1:30 p.m., D.C. Bar Conference Center. Washington.
* GOP moves away from entitlements and toward tax reform in budget deal. Lori Montgomery – The Washington Post. With another fight over the national debt brewing this summer, congressional Republicans are de-emphasizing their demand for politically painful cuts to retirement programs and focusing on a more popular prize: a thorough rewrite of the U.S. tax code. Link