When you think of the National Association of Realtors, you probably don't think the organization has anything to do with you unless you are a licensed Realtor. Think again. Real Estate professionals are your advocates, both in transactions and on the sidelines. As the Tax Reform bill heats up in the public eye, representatives from N.A.R. have been diligently working behind the scenes in favor of the public sector, lobbying with a passion in order to protect and preserve important key elements of the tax code. Our individual agent association fees and donations helped support the efforts of the N.A.R. 

The National Association of REALTORS® (NAR) worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment. Many of the changes reflected in the final bill were the result of the engagement of NAR and its members, not only in the last three months, but over several years. Here are some key items:

  • In the sale of real property, the capital gains tax exclusion period has been retained. To qualify for the exclusion from capital gains tax for the sale of real property, homeowners must have lived in their home as a principal residence for any 2 of the last 5 years. Without NAR’s efforts, the residency requirement exclusion period would have surely been lengthened to 5 of the last 8 years.
  • Permitting the SALT (State and Local Tax) deduction to include income and sales taxes as well as real property up to $10,000. While clearly less beneficial than the current law, it represents a significant improvement over the bills as first introduced which would have entirely eliminated the SALT deductions.
  • The MID was reduced only to $750,000 and was retained for second homes. The House version would have reduced it to $500,000 and eliminated it for second homes.
  • The final law retains current law regarding Mortgage Credit Certificates (MCCs). The house version would have repealed MCCs.
  • 1031 like-kind exchanges retained for real property.
  • The law provides a deduction for casualty losses if attributable to a presidentially-declared disaster. The House bill would have eliminated the deduction for casualty losses with limited exceptions.
  • The Historic Rehabilitation Credit was retained, but would have been entirely eliminated under the House bill.

Cited from the National Association of Realtors, 2017.