DC real estate lobby apprehensive about the Republican tax plans

Realtors and Home Builders associations watching homeowner incentives carefully

New York /
Nov.November 13, 2017 08:40 AM

Elizabeth Mendenhnall and Granger MacDonald

Two of the real estate industry’s biggest lobbying organizations have expressed concerns with Congress’ proposed tax reforms.

“Simply preserving the mortgage interest deduction in name only isn’t enough to protect homeownership,” said National Association of Realtors president Elizabeth Mendenhnall, according to Mortgage Professional America.

Mendenhall said NAR has concerns over how the proposal could impact middle-class homeownership.

“We’ve already seen that a near-doubling of the standard deduction, combined with the elimination of other deductions like the state-and-local tax deduction, can turn the American Dream into a nightmare for families, as the rug is pulled out from under them,” she added.

Limiting the mortgage interest deduction could cause home prices to fall by more than 10 percent in suburban counties close to New York, far greater than the 3 to 5 percent decline nationwide, according to Moody’s Analytics.

But the plan would also lower the top tax rate on pass-through entities like LLCs, which could mean big savings for condo developers, as The Real Deal reported.

The National Home Builders Association said it does not support the House of Representatives’ bill, but that there was some good news from the Senate version.

“However, though the Senate bill provides meaningful tax relief for small businesses and keeps the complete Low-Income Housing Tax Credit program in place, we still believe that maintaining an effective homeownership tax benefit is vitally important,” NHBA chairman Granger MacDonald said. [MPA] – Rich Bockmann


Related Articles

arrow_forward_ios
Compass' Kristen Ankerbrandt and Robert Reffkin (LinkedIn, Getty Images)
Compass revises market share after NAR changes its math
Compass revises market share after NAR changes its math
NAR CEO Bob Goldberg (NAR, Getty Images)
Agents notched 25% income bump in frenzied 2021
Agents notched 25% income bump in frenzied 2021
(Getty)
Priced-out buyers trigger drop in pending home sales
Priced-out buyers trigger drop in pending home sales
Pam Liebman, Bess Freedman and James Whelan
Two years after George Floyd’s death, is real estate honoring its pledges?
Two years after George Floyd’s death, is real estate honoring its pledges?
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Existing-home sales slide in May as price passes $407K
Existing-home sales slide in May as price passes $407K
National Association of REALTORS' Charlie Lee (LinkedIn, iStock, Illustration by Kevin Cifuentes for The Real Deal)
NAR catches break in one antitrust lawsuit
NAR catches break in one antitrust lawsuit
EisnerAmper chair of real estate services Lisa Knee (EisnerAmper)
Listings shortage could endure for years, experts say
Listings shortage could endure for years, experts say
NAR president Leslie Rouda Smith (Facebook/Leslie Rouda Smith, iStock)
This agent commissions suit could rock the resi industry
This agent commissions suit could rock the resi industry
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...