Public Affairs Update

Public Affairs Update………………………………………………….November 21, 2018

  • New Video Series: What Realtors need to know about the New Tax Law
  • NAR Joins Trades in FTC Letter Regarding Data Security
  • NAR: Keep Rental Deduction Simple
  • An Update on GSE Conservatorship
  • Pizza & Public Affairs Wednesday December 5, 2018 Noon to 1:00pm at BARA
  • In Case You Missed It

 

New Video Series: What REALTORS need to know about the New Tax Law

This video series with Evan Liddiard, Director of Federal Tax Policy for the National Association of REALTORS®, and Peter Baker of the Business Planning Group, gives an overview of 2018's new tax laws. The series offers guidance for individuals and families filing tax returns, the tax incentives of owning a home, as well as business tax changes for real estate professionals. [Source: NAR Update 11-14-2018]

https://www.nar.realtor/taxes/what-realtors-need-to-know-about-the-new-tax-law

 

NAR Joins Trades in FTC Letter Regarding Data Security

On October 10, in anticipation of the Federal Trade Commission’s (FTC) announced hearing on Data Privacy and Security on November 6-7, NAR joined a group of main street trade associations to set forth a number of principles that we would like to see in any new data privacy and security legislation. Considering the widespread risk of data breaches afflicting all American industries and public institutions, there are four key principles our associations collectively support in setting any federal data security and breach notification policy: uniform national laws, reasonable data security standards, appropriate FTC enforcement and ensuring all breach entities have notice obligations. [Source: NAR Update 11-14-2018]

Download the Joint Letter to the FTC

 

NAR: Keep Rental Deduction Simple

“The new deduction for qualified business income included in last year’s tax reform act should be simplified and made easily available to the 10 million Americans who report income from rental real estate.”   

 

That was the main message delivered by Iona Harrison, a REALTOR® from Upper Marlboro, Maryland, as she testified before a public hearing held by the Internal Revenue Service (IRS).  

 

Ms. Harrison was referring to requirements outlined in proposed rules released in August requiring owners of rental real estate to determine whether their rental activity rises to the level of a “trade or business” under Section 162 of the Internal Revenue Code in order to claim the deduction.  

“When I read this requirement, I am confused.  And I can tell you that the vast majority of my fellow property owners are also going to think this is way less than clear.  Even many seasoned tax professionals do not understand the distinction between a ‘trade or business’ and real estate that is held as a productive investment,” she asserted.  

 

To solve the problem, NAR recommended to the IRS that all real estate rentals be considered as meeting the “trade or business” requirements for purposes of claiming the deduction.

 

The stakes are high for the estimated 40 percent of NAR members who own rental real estate, as the deduction can reach as high as 20 percent of the net rental income earned from the property.

 

The Treasury Department and IRS are aiming to release the final rules before the end of the year in order to give guidance to owners in time for filing 2018 tax returns. [Source: NAR Update 11-14-2018]

Download Iona Harrison’s Testimony(link is external)

NAR's Comment Letter to Treasury and IRS

 

An Update on GSE Conservatorship

A report gives insights into what has changed in the year since the first blueprint for restoring the safety and soundness of Fannie Mae and Freddie Mac made the rounds.» READ MORE [Source: DSNews.com 11-13-2018]

 

Pizza & Public Affairs Wednesday December 5, 2018 Noon to 1:00pm at BARA

Guest Speaker:

Elizabeth Peetz Government Affairs Vice President, Colorado Association of Realtors®

 

2019 Legislative Preview

Since the Democrats have now captured majorities in the House and Senate the 2019 legislative session is sure to be lively with a number of real estate issues in play. Not the least of which will be an effort to repeal the ‘Gallagher Amendment’ that sets the rate of residential property taxes relative to commercial property rates potentially pushing up residential property tax rates to as much as three time the current rate. And, that’s just the beginning…

  • Post election review. What new legislative leadership means for Realtors®.
  • Repeal of the Gallagher Amendment?
  • Can we expect new real estate transaction fees?
  • Is statewide ban on rent control safe?

 

You don’t want to miss this conversation, RSVP TODAY!

 

In Case You Missed It