The Tax Cuts and Jobs Act
What it Means for Homeowners and Real Estate Professionals
The National Association of REALTORS® (NAR) worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment, as well to ensure as many real estate professionals as possible would benefit from proposed tax cuts.
While NAR remains concerned that the overall structure of the final bill diminishes the tax benefits of homeownership and will cause adverse impacts in some markets, the advocacy of NAR members, as well as consumers, helped NAR to gain some important improvements throughout the legislative process. The final legislation will benefit many homeowners, homebuyers, real estate investors, and NAR members as a result.
The final bill includes some big successes. 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.
In fact, former CABR President and 2017 President of the Ohio Association of REALTORS® Pete Kopf was part of a contingent of REALTOR® members who flew in to Washington D.C. and met with members of Congress’ conference committee such as Ohio’s Senator Rob Portman.
In their meeting, Senator Portman committed to keeping the exclusion of gain on sale of a principal residence in the final bill, in addition to other issues important to NAR, our members and our clients.
NAR will be providing ongoing updates and guidance to members in the coming weeks, as well as working with Congress and the Administration to address additional concerns through future legislation and rulemaking. Lawmakers have already signaled a desire to fine tune elements of The Tax Cuts and Jobs Act as well as address additional tax provisions not included in this legislation in 2018, and REALTORS® will need to continue to be engaged in the process.
Keep in mind, the examples provided in NAR’s summary are for illustrative purposes and based on a preliminary reading of the final legislation as of December 20, 2017. Individuals should consult a tax professional about their own personal situation.
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