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.
The National Association of REALTORS® Board of Directors approved a 2026 budget with no dues increase and passed a Professional Standards Recommendation to clarify language in NAR Code of Ethics Standard of Practice 10-5, which prohibits harassment of any person or persons protected under Article 10 of the Code. A day earlier, the Executive Committee approved another Professional Standards change, revising language for Policy Statement 29 designed to ensure state and local associations can fairly and consistently enforce the Code of Ethics. Learn more about the changes. Read the revised Code of Ethics and Standards of Practice. Board members also approved a consent agenda to elect the 2026 officers and regional vice presidents . Christine Hansen of Ft. Lauderdale, Fla., was elected 2026 President-Elect, and Colin Mullane of Ashland, Ore. was elected 2026 First Vice President. The meeting opened with a video message from President Donald Trump, who welcomed REALTORS® to Washington and thanked them for support of the House-passed tax reform. NAR routinely invites the U.S. president to address REALTORS® at the Washington meetings. Over NAR's history, nine sitting presidents have addressed the association. Board Actions Approved a series of Finance Committee recommendations, accepting the association’s financial statement, approving the 2026 operating and advocacy budgets, and keeping dues at $156. The board actions also redirect $35 of the $45 Consumer Advertising Campaign assessment to operating funds. This change positions NAR to make its next settlement payment in February 2026 and maintain a balanced budget without raising total dues. The remaining $10 for the Consumer Advertising Campaign will fund optimized, metrics-driven activities that reach and engage consumers in critical markets. NAR CEO Nykia Wright and President Kevin Sears explained the shift at the opening session of the conference . Amended Standard of Practice 10-5 to give state and local associations greater clarity in how to fairly and consistently enforce Article 10 of the Code of Ethics. The amended Standard of Practice says that REALTORS®, in their capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities, shall not harass any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. Made a series of recommendations to the Standards of Practice to bring the language in line with the terms of NAR’s 2024 settlement. Approved a motion to make one member of the Executive Committee a commercial practitioner who has served as chair, vice chair or liaison of an NAR commercial-related committee or forum to serve a two-year term and be independent of the 10% commercial representation requirement outlined in the NAR Constitution. Approved a recommendation from the Credentials and Campaign Rules Committee to amend qualifications for president-elect, first vice president and treasurer effective Jan. 1, 2026. Qualifications for top-line officers are now aligned with those already in place for regional vice presidents. Approved recommendations from the Member Accountability Committee related to applications for volunteer leadership and the Statement of Appropriate Event Conduct. The goal of the recommendations is to ensure members found in violation of the NAR Member Code of Conduct are properly disclosed. Award Winners NAR President Kevin Sears announced the 2025 Distinguished Service Award winners James P. Cormier , AHWD, C2EX, of Minneapolis-St. Paul, and Brooke S. Hunt , AHWD, E-PRO, SFR, SRS, C2EX , of Flower Mound, Texas. In addition, the group recognized the winner of the 2024 William R. Magel Award, Anne Marie DeCatsye , CEO of the Canopy REALTOR® Association and Canopy MLS in the Charlotte, N.C., metro area. REALTORS® Relief Foundation During the meeting, REALTORS® Relief Foundation President Greg Hrabcak appealed to board members to make a tax-deductible donation. The fund provides housing assistance to victims in the immediate aftermath of a disaster; 100% of funds donated go to disaster relief. “We’ve had devastating wildfires in California, tornadoes in Missouri and Kentucky and flooding in West Virginia, and we’re still in the first half of this year,” Hrabcak said. Before the meeting ended, directors had donated more than $41,000.
Whether you’re working in Baton Rouge, Shreveport, Lafayette, or anywhere in between, here’s how you can use Homeownership Month to elevate your real estate marketing and better serve your community.
Here are key insights and ready-to-use talking points to show your clients how homeownership is more than just a place to live—it's a smart strategy for long-term wealth building, especially right here in our state.
