Public Affairs Update

Public Affairs Update…………………………………………………….October 10, 2018

  • NAR Urges Deduction for Rental Income
  • Senate Banking Committee Talks Housing and Lending Regulation
  • NAR Supports Proposed ESA Reform
  • FHA: HECMs Need Second Appraisal
  • Two Added to NAR Senior Management Leadership Team
  • Pizza & Public Affairs Wednesday November 7, 2018 Noon to 1:00pm at BARA
  • In Case You Missed It

 

NAR Urges Deduction for Rental Income

The Tax Cuts and Jobs Act include a 20 percent deduction from the net business income of sole proprietors and owners of S corporations, partnerships, and limited liability companies.  The new deduction is intended to provide roughly the same tax rate cut the Act provided to regular corporations.  However, it is unclear whether owners of rental real estate will be able to claim the deduction. 

 

NAR has asked the Treasury Department and Internal Revenue Service, in a letter, to treat all real property rental activity as eligible for the 20 percent deduction.  The letter asserts that without this change, the 10 million American owners of rental real estate will be forced to wade through voluminous and confusing tax cases and conflicting IRS positions in order to determine for themselves whether their rental activity constitutes a "trade or business," which is a requirement for the deduction.  The letter also lists factors that indicate Congress intended the deduction to be available to the great majority of owners of rental property without the burden of excess complexity. 

 

The IRS will hold a public hearing on the proposed regulations on October 16.  NAR has requested that a representative of the association be allowed to testify on this issue. 

 

NAR sent an earlier comment letter to Treasury and IRS on another issue related to the 20 percent deduction, on the question of whether real estate brokerage activities qualify for it.  In a huge win for REALTORS, the proposed regulations reflected the position suggested by the letter. [Source: NAR Update 10-01-2018]

A copy of the letter can be found here: narfocus.com/billdatabase/clientfiles/172/3/3247.pdf

 

Senate Banking Committee Talks Housing Regulation

The Senate Banking Committee held a hearing titled “Implementation of the Economic Growth, Regulatory Relief and Consumer Protection Act,” discussing the implementation of the Act and its amendments. Click through to learn what was discussed at the hearing. » READ MORE [Source: DSNews.com 10-03-2018]

 

NAR Supports Proposed ESA Reforms
In a letter to the House Natural Resources Committee, NAR called on the committee to pass a package of proposed bills that would reform the Endangered Species Act. [Source: NAR Update 10-04-2018]

 

FHA: HECMs Need Second Appraisal
A new mortgagee letter, 2018-06, requires a second appraisal for certain home equity conversion mortgages. [Source: NAR Update 10-04-2018]

 

Two Added to NAR Senior Management Leadership Team

Effective immediately, Victoria Gillespie (left) will serve as chief marketing and communications officer, and, starting Oct. 15, Shannon McGahn (right) will become NAR's senior vice president of government affairs.

With over 30 years of industry experience, Victoria will set communications strategies for NAR to drive member engagement and satisfaction and strengthen NAR's relationship with consumers. She has owned and operated her own real estate agency for more than 12 years, and most recently served as senior vice president of enterprise and marketing communications for Northwest Federal Credit Union.

Shannon has spent her career working on Capitol Hill: She has worked with House and Senate leadership, senior White House aides, relevant committees and federal agencies to address and enact its legislative and regulatory priorities. She also served as counselor to the secretary of the U.S. Treasury, leading early efforts to build relationships with members of tax writing and banking committees, as well as House and Senate leadership, to develop consensus on legislative initiatives. Read the press release. {Source: NAR Update 10-02-2018]

 

 

Pizza & Public Affairs Wednesday November 7, 2018 Noon to 1:00pm at BARA

Jay Sugnet, Senior Planner, Boulder Housing Division-ADU Regs Before and After Revisions and What’s Next…

 

In Case You Missed It