You have received several communications over the past few weeks about the REALTOR® position on the proposed changes to tax reform. This morning, the house passed a budget plan that would likely pave the way for an overall tax reform package. The individual reforms are complicated and intertwined – and impact both businesses and individuals. The REALTOR® position has always focused on strengthening the ability of Americans to buy, sell and own property. As commercial practitioners, we support a simplified tax code which will lead to increased economic growth, while opposing proposals that would disadvantage real estate investments compared to other asset classes. While not specifically targeted in the tax reform plans, the continuation of the Section 1031 like-kind exchange continues to be at risk, and our advocacy efforts through NAR will support their ongoing benefit. Section1031 like-kind exchanges are used in an estimated 10 to 20 percent of commercial real estate deals, largely as a way to defer capital gains tax. We also advocate for the continuation of the capital gains tax treatment of carried interest which the president campaigned on eliminating. In the coming weeks, you will be seeing more information from us encouraging your support of individual commercial interests. We may ask for testimonials, examples or for you to reach out to members of congress. Please continue to engage and contact us with questions and concerns.
See the latest from the Real Estate Roundtable: HERE