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As the nation awaits President Trump’s signature to a tax reform bill which has broad implications for just about every American, it’s worth noting the role REALTORS®’ efforts played in shaping the legislation into a package that did the least harm to the real estate industry.
To do that, it’s important to note where we were a year ago, and then look at where the bill ended up.
Illinois REALTORS® President Matt Difanis said there were clear improvements in the final version.
“The tax bill in its current form is substantially improved from proposals REALTORS® were faced with in the beginning stages of the debate,” Difanis said. “Early proposals included dire items including eliminating the Mortgage Interest Deduction, doing away with deductions for state and local taxes, getting rid of any deduction for a second home and even eliminating critical commercial real estate provisions.”
The bill passed the House on Monday, and a clean-up version of the House bill passed this morning. The Senate did it’s share on the bill early this morning. The bill now heads to the president’s desk where it is expected to be signed into law.
“While there remain legitimate concerns about the bill and its long-term impacts, it is clear that REALTORS® voices were heard in the effort to overhaul the nation’s tax system.” Difanis said. “We look forward to working in the future to make sure tax code changes are further fine-tuned to help consumers and investors.”
Third of Illinois REALTORS® answer Call for Action
Difanis noted this was a hard-fought effort that drew in more than a third of Illinois REALTORS® who took part in an initial Call for Action, a record response for the association.
Additionally, Federal Political Coordinator (and past association president) Mike Drews flew to Washington, D.C., to meet with lawmakers, and Illinois REALTORS® were part of roundtable discussions with Sens. Tammy Duckworth and Richard Durbin.
Bill’s final version shows power of R
NAR released a information this morning which shows the impacts the new bill will have. (It can be found on their website.) But among the highlights:
- Capital gains exclusions were left in place which exclude $250,000 for a single person and $500,000 for married couples.
- The Mortgage Interest Deduction, a mainstay of the housing economy for decades, was preserved and negotiation resulted in a $750,000 mortgage limit for the tax provision.
- State and local taxes are still deductible, although with a combined limit of $10,000. In a high-tax state such as Illinois, this is not a perfect win, but it is far better than initial plans which would have eradicated this deduction.
- For commercial practitioners, the 1031 Like-Kind Exchange was preserved.
REALTOR® advocacy made the difference.
NAR’s million-plus strong membership made sure lawmakers knew that big changes could have a huge impact on the housing economy. Illinois REALTORS® did their part, too.
