One of the essential parts of your REALTOR® dues is advocacy that works. This government affairs update will help you understand a few of the major legislative matters your REALTOR® family is working to protect this quarter. Watch the video and ensure you’re prepared to answer your clients’ questions about these important private property rights issues.
Federal Tax Reform
- Mortgage Interest Deduction
- We are committed to protecting the current federal tax provisions that benefit real estate and will remain vigilant in opposing any plan that limits or eliminates the deductibility of mortgage interest. The MID reduces the carrying costs of owning a home, and it makes a real difference to hard-working American families.
- Learn more.
- State And Local Tax Deductions (SALT)
- Real property taxes, along with other state and local taxes paid, are deductible for federal income tax purposes. If the deduction for state and local taxes paid were repealed or limited, the costs of homeownership would rise.
- Learn more.
- 1031 Like-Kind Exchanges
- Current tax law permits an investor in real estate to defer capital gains taxes on exchanging an investment property for another property of like kind that is also held for investment, so long as the taxpayer satisfies numerous requirements and consummates a purchase of replacement property within 180 days of the transfer of the relinquished property. The exchange rules often provide a real estate professional with an opportunity to facilitate two transactions: the sale of the relinquished property and the purchase of the replacement property. Any curtailment of the exchange rules will make both pieces of exchange transactions more difficult to conclude and would mean that many transactions would not take place. The like-kind exchange technique is among the most important of all tax provisions for real estate investors and commercial real estate professionals.
- Learn more.
A recent proposal in the IL House of Representatives – House Bill 2430 – threatens to repeal the Rent Control Preemption Act, which would open up rent control as an option for all home units in the state. This is a direct threat to private property rights. Rent control is widely discredited by economists and housing advocates, is complicated to administer, and would have significant unintended consequences, including lowering property values, increased bureaucracy and stalled development.
We want to provide judges in Chicago judicial discretion to decide the penalty if a landlord violates the Chicago residential landlord ordinance, in order to create fairness for landlords as well as tenants. Ordinance violations affect affordability for working families, as landlords pass violation costs onto tenants. We are going to have a hearing in the upcoming months, with a vote to come this summer.