The Voice for Real Estate 77: Tax Reform Bill Bad for Homeowners

House Republican tax reform legislation was introduced as REALTORS® met in Chicago for their 2017 Conference & Expo. NAR opposes the legislation because it will hurt homeowners. Also, a REALTOR® testified before Congress on how to improve the secondary mortgage market. 

Segments: 

  • 2017 REALTORS® Conference & Expo 
  • House tax reform bill 
  • Mortgage market reform 

Transcript

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Thousands of REALTORS® took home ideas for building their business at the 2017 REALTORS® Conference & Expo in Chicago

The tax reform bill is out—and it’s not good for homeowners

And millennials are going to be your biggest clients—do you know how to talk to them?

These stories and more on The Voice for Real Estate

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

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What a week it’s been in Chicago—the home of the National Association of Realtors. 20,000 REALTORS® and guests were in town the first week of November to get the latest ideas on increasing their income, reducing their costs, and managing their money. In all, there were hundreds of educational sessions and even more opportunities to boost their business at the country’s largest real estate trade expo.

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NAR’s committees and governing bodies met, too, to explore how REALTORS® will be affected as the latest demographic, technological, and legal changes arise to shape their industry. And the National Association of Realtors’ Board of Directors met to vote on policies to keep REALTORS® at the center of the transaction.

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You can get all the news and resources from the conference at nar.realtor by searching “2017 REALTORS® Conference & Expo.”

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The wait is over. House Republicans have released tax reform legislation and it’s tough on the people who already contribute the highest share of taxes in our country—homeowners. Although NAR supports tax reform, this bill would eliminate the distinction between owning and renting by drastically paring back—or cutting altogether—itemized deductions, which have been integral to our country’s support of homeownership for 100 years.

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In one of the bill’s toughest hits to homeowners, it imposes a $500,000 cap on the size of mortgages for which you can take the mortgage interest deduction. That’s half the $1 million limit today. And MID would be eliminated for second homes and equity lines of credit.

It also caps the state and local property tax deduction to just $10,000. All other itemized deductions, with the exception of the one for charitable contributions, go away altogether.

What’s more, the capital gains exclusion that households take when they sell their home would be made much harder to use. As you know, that exclusion applies to sales proceeds of up to $250,000 for an individual and $500,000 for a married couple, but you’d have to live in your house for at least five of that last eight years to take it under the bill. Right now, you only have to live in the house for two of the last five years.

And the value of the exclusion would decline for higher-income households.

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Already hundreds of thousands of REALTORS® have sent emails to their members of Congress saying the bill is a tax increase on middle-class homeowners. You can send an email, too, at realtorsactioncenter.com.

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Do you know how to talk to millennials? They’re our country’s largest generation and they’re the fastest-growing home buying segment. That’s why REALTOR® magazine at the conference hosted a big session on how you can be the real estate agent they turn to when they’re ready to buy or sell.

You can watch the session in its entirety on REALTOR® magazine’s Facebook page.

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And that’s our show for the week of November 6. If you were at the Conference & Expo, thank you for taking time out of your business to be there. And if you responded to the Call for Action on tax reform, thank you for your effort on behalf of homeowners and your industry.

Now, if you want to get more on anything we talked about today, you can get that on 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.

More: 
Tax Reform
Fannie Mae & Freddie Mac (GSEs)

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