The Chicago Association of REALTORS®, the “Voice for Real Estate” in Chicago since 1883, represents over 17,000 members from all real estate specialties including commercial sales, development, property management, appraisal, auctions and residential sales.
Earlier this month, the IRS released proposed regulations reflecting the reforms made by the Tax Cuts and Jobs Act of 2017.
These guidelines work to clarify which groups of workers can claim the law’s 20 percent business income deduction for non-corporate businesses known as a “pass-through.” Under these guidelines, REALTORS®, agents and brokers can claim this “pass-through,” while owners of brokerages cannot.
Additionally, directly managing real estate will not be considered investment management under the reforms.
Qualified members will be able to claim the business income deduction on their 2018 federal income tax return filed next year.
Learn more about the proposed IRS deductions on the government’s website or visit the National Association of REALTORS®’s Tax Reform resource.