Why are REALTORS® Opposed to Current Tax Reform Proposal?
Amy Fennell • November 6, 2017
The National Association of REALTORS® and Louisiana REALTORS® has engaged and encouraged REALTORS® and consumers to TAKE ACTION
against the proposed tax reform that was unveiled in the House last week.
As Congress continues discussion on the subject the #realtorparty is united in OPPOSITION because the bill is a direct threat to consumers, to homeowners, and to the real estate industry. Not only will millions of homeowners not benefit from the proposal, many will get a tax increase. Additionally, homeowners could lose substantial equity from the more than 10% drop in home values likely to result if the bill is enacted.
WHAT THE LEGISLATION WOULD DO:
Caps the mortgage interest deduction at $500K for new mortgages
Cap applies to new mortgage debt (but not refinancing) incurred after November 2, 2017.
Limit is not indexed to inflation causing its value to even further diminish over time.
Increases the standard deduction
Puts homeownership tax incentives beyond the reach of more than 90% of American families.
Limits the exemption on Capital Gains Tax from the sale of a primary residence
New rules would require homeowners to live in their home for 5 of 8 years before a sale to qualify for the exemption, versus just 2 of previous 5 years today. This will create a hardship to homeowners who have to move inside that five-year window.
Exemption phases out for single filers with incomes over $250K ($500K for joint returns).
Eliminates the deduction for state and local income or sales taxes.
Eliminates the Mortgage Interest Deduction for second homes.
Eliminates the deduction for moving expenses.
Eliminates the deduction on interest on student loans.
Eliminates the deduction for medical expenses, even for the elderly.
All this from a bill that is supposed to improve the current system.
NOT ONLY IS THIS LEGISLATION A CLEAR AND PRESENT DANGER TO
AMERICAN HOMEOWNERSHIP, IT WILL COST OUR CHILDREN AND GRANDCHILDREN $1.5 TRILLION IN NEW FEDERAL DEBT.
· Millions of middle class homeowners would see a tax hike under this plan.
· This plan attacks homeownership and sticks future generations with a $1.5 trillion price tag.
· America's homeowners should not pay for corporate tax cuts.
· Hard-working homeowners will lose money when their home values fall, while corporations will get a huge tax break.
· Homeowners in all 50 states would be double-taxed on the money they pay for state/local taxes.
· If you buy a home and then have to move within 5 years, you could be hit with a big tax bill under this plan.
Association emphasizes lower monthly expenses, more housing options and practical relief for Louisiana families.
Want Your Teen to Own a Home Someday? Start Talking Money Now Teens may not be thinking about mortgage rates or down payments just yet, but the money habits they’re building now can follow them for years. And 88% of teens surveyed by Fannie Mae and Junior Achievement said they want to own a home someday. This week’s Consumer Guide: Talk to Your Teens About Money and Homeownership makes those conversations a little easier, covering everything from credit scores and budgeting to debt, renting versus owning and saving for that eventual down payment. So yes, you may have to interrupt the doomscrolling. But helping teens get smarter about money today could put them in a much better position to get the keys to a home of their own down the road. Download all of NAR’s Consumer Guides in English or Spanish at facts.realtor. For ease of reference, below is a list of the most recent guides: NEW: Teen Financial Literacy Fraud Red Flags Helping Family Members Become Homeowners Prepare Your Home for Hurricane Season Condominium Insurance Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. The next Consumer Guide, scheduled for publication on Oct. 21, will cover winter cold and storm preparedness.
Homeownership Is on Louisiana's November Ballot
