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What Tax Reform Means For REALTORS® and Homeowners

October 24, 2017 in Government Affairs

Tax reform proposals swirling around Washington, D.C. right now make some sweeping changes to the tax benefits that homeowners have come to depend on. In fact, 95 percent of the current tax reform plans in Congress threaten to eliminate important tax benefits for homeowners, according to the National Association of REALTORS® (NAR).

Concerns for the negative effects of the proposed plan prompted NAR to issue a national call for action in mid-October. NAR and the REALTOR® Party work hard every day to protect against legislative proposals that could harm homeownership and the real estate industry. These proposed reforms threaten to remove tax incentives for home owners for the middle-class, including the mortgage interest deduction and the state and local property tax deduction.
Answer the Call for Action between now and midnight on Monday, October 30 for a chance to win one of two $50 Visa Gift Cards!

The most recent IRS data available shows that at a marginal rate of 25 percent, the average taxpayer saved just under $2,500 in taxes in Kansas and Missouri as a result of the MID and the state and local property tax deduction. Congress is looking to reclaim those savings, taking it from the pockets of homeowners to pay for tax cuts.

The tax advantages of homeownership are a top priority for most homebuyers when deciding whether to buy or rent, and homeownership helps millions of Americans build family wealth. NAR estimates that the elimination of the MID alone could cause home values to drop nationwide up to 10% overnight.

As housing goes, so goes the economy. Any tax reform plan
that discourages home ownership is one that all REALTORS® must oppose. Please
TAKE ACTION NOW to remind your Member of Congress that any tax reform must not
dilute current real estate tax provisions vital to the housing market. We need
tax reform, but it must first do no harm to housing.

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