The Voice for Real Estate 90: Florence, 20% Deduction, Fannie and Freddie Changes, Inventory Shortages

The latest Voice for Real Estate news video looks at what you should be doing to take the new 20 percent business income deduction for the 2018 tax year.

Transcript

REALTORS step up with help victims of Hurricane Florence

Are you ready to maximize the new 20 percent business income deduction?

And NAR has a tool to help you get more listings in your area

These stories and more on The Voice for Real Estate

Hi, I’m Stephen Gasque with the National Association of Realtors.

Flooding along the coast in the Carolinas has left dozens dead, hundreds of thousands without power, and, for many people, months of painful recovery as they rebuild their properties.

And as they do, Realtors are stepping up. Just as they always do do whenever their neighbors are faced with catastrophic loss. Realtors are helping with rescue efforts, providing food, water, and shelter to those who need it—and they’re donating money to the Realtors Relief Foundation. 100 percent of its donations go to helping Realtors and their families pay their mortgages or rent or meet other needs while they get back on their feet. And NAR pays all of the foundation’s administrative costs..so that every dollar goes to people in need. Here’s NAR Treasurer Tom Riley on the outpouring of support Realtors are showing.

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You can help now by donating online at nar.realtor/rrf.

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2018 is the first tax year you can take advantage of the new 20 percent business income deduction. Congress passed that provision last year as part of its big tax reform bill. It applies to your net business income —that’s your commission plus other qualified business income minus your business expenses. But there are limits. First, if you file as a single taxpayer the deduction starts to phase out when your net business income hits $157,500. And if you file a joint return, it starts to phase out after your joint net business income reaches $315,000. There are other limitations, also, including what the IRS will count as qualified business income in addition to your commissions. NAR will be coming out with guidance on this and other aspects of the tax law shortly. We’ll let you know when that’s ready. But right now? Start talking with your accountant about the new deduction. If you haven’t had that conversation yet, NAR recommends you do so soon. Ask about the new Section 199A business income deduction.

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10 years ago, the federal government put Fannie Mae and Freddie Mac, under conservatorship in response to the mortgage market meltdown. It was a difficult, uncertain time. The economy was in recession, people were losing jobs, home prices were falling, and many mortgage lenders were getting out of the business. Fannie, Freddie, and FHA continued to make loans, although tighter underwriting requirements were necessary to restore confidence in the safety of mortgage-backed securities.

Realtors stepped up as champions for homeowners, working with lawmakers to ensure the continued availability of financing, creating the temporary homeownership tax credit, and developing a way for underwater borrowers to work through their challenges. We’re joined once again by NAR Treasurer Tom Riley on what comes next.

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Mortgage finance reform remains one of the biggest challenges the federal government faces. NAR will keep you up to date as lawmakers begin this difficult process.

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It’s been the housing market’s most persistent problem since the economic recovery a decade ago: not enough homes for all tye buyers out there. Right now, for every four jobs created, only one housing permit is issued. That means many people who have the means to buy often can’t. The result: escalating home prices. They’re up 48 percent since 2012.

How bad is the problem in your area? And what can you do about it? NAR has a brand new resource that lets you calculate the housing shortage in your area and how it’s affecting affordability. It also gives you strategies for working with other Realtors, your area government, and other entities to get more homes to sell. Here’s NAR’s Nadia Evangelou with more.

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To access this interactive resource, go to realtorparty.realtor and search “housing supply shortage.”

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New research from NAR shows just how important social media is to your business. In a survey conducted last month, almost half of all respondents say their social media accounts have given them the highest number of qualified leads in the past year! That’s more than their MLS and brokerage websites and more than third-party listing sites. Here’s Jessica Lautz of NAR Research on other important findings from NAR’s technology survey.

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The findings are available for you to download by searching 2018 technology survey at nar.realtor.

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And now a market update for you. Existing-home sales for August remain unchanged compared to July, as too-few homes for sale make prices too expensive for many households. Here’s NAR Chief Economist Lawrence Yun.

And now a market update for you. Existing-home sales for August are headed up for the first time in several months as the economy continued to post solid growth, creating jobs, pushing up wages, and boosting confidence. Here’s NAR Chief Economist Lawrence Yun.

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All of NAR’s housing market research is at nar.realtor, slash, research and statistics.

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And that’s our show for the week of September 24. You can get more on everything we talked about at The Voice for Real Estate page on nar.realtor. Thank you for joining us and be sure to join us again as we bring you the latest news on The Voice for Real Estate.

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