Seniors Housing Business

ASHA 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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AS H A 50 60 2018 ASHA 50 2018 man (R-Ohio) and Senator Sher- rod Brown (D-Ohio) introduced legislation to extend the current law for two years. ASHA worked to build momentum for this effort and engaged our members in several ways, including facilitating member and resident participation in a press conference hosted by Brown in Cleveland, Ohio, to show support for the bill. We generated over 800 letters to Capitol Hill sent by operators and, more importantly, the residents themselves and on-site staff. Unfor- tunately, prospects for a standalone bill diminished, but all was not lost. In the end, Senator Susan Collins (R-Maine) championed this issue and advocated to include it in the tax bill. We also credit the larger coa- lition of industry advocates who collectively worked to move this across the finish line. As a result, the 7.5 percent income threshold remains in place for all taxpayers until the end of 2018. Our work continues. Business interest deduction When a key provision in the tax bill imposed a limitation on the deduction of business interest, the impact on seniors housing was not entirely clear. With an exception provided for those deemed a "real property trade or business," we wasted no time to get clarification from policymakers that seniors housing qualified for this exemp- tion and therefore would not be held to the stated 30 percent limitation. ASHA's lobbying team and ASHA members quickly engaged key senators and committee staff, urging a clarification at what was quickly becoming the 11th hour. As a result of our outreach efforts and presentation of solid rationale to support our request, we secured a statement, or a "colloquy," in the congressional record to confirm that assisted living, memory care and continuing care retirement communities are considered "real property trade or business" for purposes of exercising the option to take the 100 percent deduction for business interest. This colloquy between Senator James Lankford (R-Oklahoma) and Senator Orrin Hatch (R-Utah) is now part of the legislative history and carries great weight with regulators who are responsible for interpreting the new legislation, in this case, the IRS. This was a big victory for ASHA and the industry. Seniors housing operators and owners are also impacted by the overall rate reductions, including the 21 percent flat rate for corpora- tions; the 20 percent deduction of pass-through income; the retention Capital Senior LivingĀ® Corporation is one of the nation's largest operators of residential communities for senior adults. The Company's operating strategy is to provide value to residents by providing quality senior living services at reasonable prices. The Company's communities emphasize a continuum of care, which integrates independent living, assisted living and memory care services, to provide residents the opportunity to age in place. The Company operates 129 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 16,500 residents. Our team is poised to meet the ever-increasing need for a large, well-capitalized and results-oriented senior housing community. C A P I TA L S E N I O R L I V I N G 14160 Dallas Parkway, Suite 300 Dallas, Texas 75254 tel 972-770-5600 Visit us online at capitalsenior.com

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