NAR provides tax reform details for real estate

I’m often asked about the value of our Realtor® membership. Through my involvement in my local, state and national organizations, I see that my dues provide me with far more value than I ever would have imagined when I first became a Realtor®.

For example, over the past several months your fellow Realtors® and our associations worked to preserve a 100-year tradition of providing tax incentives for homeownership. The National Association of Realtors® and our Pennsylvania Realtors® responded to the Calls-for-Action at record levels, letting Congress know how these changes would affect consumers and our industry. And thanks to those responses and the work of our national leaders and lobbying staff, the final reform package addressed some of our concerns.

Many homeowners, homebuyers, real estate investors and NAR members may initially see a benefit from the reform. The final bill includes some big successes as a result of the Realtor® effort. The exclusion for capital gains on the sale of a home was saved and the like-kind exchange for real property was preserved. Many agents and brokers who earn income as independent contractors or from pass-through businesses will see a significant deduction on that business income.

Overall, NAR is still concerned that this bill reduces the tax benefits of homeownership and will impact some markets more severely than others. In Pennsylvania, our markets are so different, it’s hard to generalize about its effect on real estate. The changes have, however, affected NAR’s projection for the market with slower growth in home prices. In markets with higher-priced homes and higher taxes, the market may experience price declines as a result of the legislation’s new restrictions on mortgage interest and state and local taxes.

NAR has prepared some phenomenal material outlining how the tax reform will affect homeowners, homebuyers, the industry and Realtors®. You’ll find it online at nar.realtor.

The Realtor® organizations’ legislative endeavors and the detailed materials explaining how this legislation affects our clients, homeowners and Realtors® are just further examples of how our dues dollars are working for us.