The Voice for Real Estate 89: 20% Tax Deduction, Financial Wellness

The IRS agrees with NAR that real estate brokerages shouldn't be subject to a restriction on the 20 percent business income deduction enacted last year as part of the tax reform law that applies to other types of brokerages. Also covered in the video: financial wellness, housing sustainability, home price trends, and ideas from fast-growing brokerages on how to give consumers what they want.

Transcript

A big tax win for REALTORS

Can you afford -  retirement? A new NAR resource can help

And the leaders of today’s fastest growing brokerages talk about doing real estate – differently! 

These stories and more on The Voice for Real Estate

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

One of the key provisions of the latest tax reform law is the 20 percent income deduction for pass-through businesses. 

But when the tax bill became law last year, it was unclear if the deduction would extend to independent contractors and business owners in our industry. Now, the IRS has released its proposed rules on the provision, making clear the new deduction WILL be available to a wide range of real estate professionals. Here’s NAR Senior Vice President Bill Malkasian with more. Here’s NAR Vice President Joe Ventrone with more. 
Here’s NAR’s 2017 President Bill Brown – with more.

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NAR helped bring about those favorable rules by providing regulators with an analysis that laid out a case for our members.

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Saving money on your taxes is great. But are you saving for your future? If not, NAR has a resource to help you achieve financial security. It’s called the Center for Financial Wellness. It gives you calculators and other tools to help you manage your income and save for retirement. You’ll also find ideas on investing in real estate -- the greatest wealth builder of all. 

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Thousands of Realtor leaders were in Chicago in early August for the NAR Leadership Summit. At that meeting, President-elect John Smaby shared his vision for the coming year. Smaby also welcomed industry innovators from OpenDoor, Compass, and Redfin to explore where technology will take your business in the years ahead. 

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Key sessions from the Leadership Summit were streamed live on Facebook. And you can see them at NAR’s Facebook page 

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And now a market update for you: the median metro area home price in the latest quarter is $269,000, a 5.3 percent increase over the previous year and the highest price ever recorded by NAR. 

NAR tracks almost 180 markets every quarter and in 90 percent of those markets, prices were up in the second quarter of 2018. 

The country’s most expensive market is San Jose, California, where the median price is $1.4 million. San Francisco is the second most expensive, at $1.1 million. In fact, four of the five highest-priced markets are in California. The other one is in Hawaii. 

The most affordable market that NAR tracks is Youngstown, Ohio. There, the median priced home is $94,000. 

Check to see if your market is on the list. Visit the housing statistics page at nar.realtor and click on the link under “Metropolitan Median Home Prices and Affordability.”

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Is environmentally sustainable housing important to Americans? An NAR survey says yes. Two-thirds of NAR members say their clients care about the topic. That’s why NAR is bringing together real estate and environmental professionals this week at a sustainability summit in Denver. They’ll be talking about how to make your business reflect what consumers want.

In advance of the summit, NAR has released a 50-page resource book on sustainability that you can download free from nar.realtor. Here’s Todd Shipman, chair of NAR’s Sustainability Advisory Group, on how the Sustainability Resource Guide can be useful to you in your business.

Here’s Cathy McQuilkin, vice-chair of NAR’s Sustainability Advisory Group, on how the Sustainability Resource Guide can be useful to you in your business.

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To access that guide, search “Sustainability Resource Guide” on nar.realtor.

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And that’s our show for the week of August 20. You can get more on everything we talked about today 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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