BILL CHERRY, Broker & Wealth Coach (Bill Cherry, Realtor)

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Ambassador
3,324,982
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

They have launched a massive Realtor initiative to members to contact their Congressman and Senators. The widgit is easy to use and it only takes about 30 seconds to do. NAR is fully opposing the elimination of interest deductions for the homeowner.

Oct 27, 2017 02:29 PM
Rainmaker
224,620
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Have you received your Call to Action yet, Bill?  NAR is fighting to keep mortgage interest deduction in any version of tax reform.

Oct 27, 2017 02:27 PM
Ambassador
1,208,002
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

They have always defineded it with a lot of money including what I give to RPAC every year. Those of us who do not want to sit on the sidelines answer the calls to Action we get on our phones and go to DC to lobby.

Oct 27, 2017 02:29 PM
Rainmaker
529,720
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I have no idea what they are doing, but would assume they oppose it. I guess it depends on what the entire tax reform ends up looking like. If it's a significant "net" lowering of taxes owed then it may be ok to lose the deduction.

Oct 27, 2017 03:08 PM
Rainmaker
3,913,291
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

this is not the first time this has happened....

Oct 27, 2017 03:05 PM
Rainmaker
1,118,437
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Fight, Fight, Fight.

Oct 27, 2017 02:37 PM
Rainmaker
67,615
Mike Kelly
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

How are you using "Homesteads"? If you mean the deduction for interest paid on a home then that's a different story. Thing to understand is 70% of homeowners don't USE the interest deduction as they already have a build in deduction in the tax code and only the "coasts" really need this incentive. I also don't think it would lower values a bit. Here in California we are going all out to change the opinions as to WHY this would be a good idea. But if you are a politican and only 30% of your constituents use the deduction that can tip your vote. Funny. I always thought Republicans where vehemently pro home ownership and they chose the low hanging fruit to balance their tax cuts. And this is NOT Tax Reform. I was in the business when we had the last major TAX REFORM. I was swamped with folks trying to get all their investment properties into the 15 year straight line depreciation! 

 

Oct 27, 2017 06:24 PM
Rainmaker
534,464
Richard Bazinet /MBA, CRS, ABR
AZuRE Team - Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale Real Estate

I'll also be the devil's advocate because you have to look at both sides of the equation. What if those home-related deductions are eliminated to simplify the tax system (keep in mind that every single-interest group wants to keep their deductions - and that is THE biggest problem) and the overall result of the tax reform reduces your tax liability - isn't this better?

It seems that many have the concept that if you keep the home-related expenses your tax liability will be less - which is not necessarily true.

Lets look at the BIG picture. I'd be 'for' the elimination of home-related tax breaks IF it reduces overall my tax burden & liability and simplify the tax system. Isn't that what we really want???

There's a lot of talking heads and so-called experts right now spewing false information and misleading the public...

Oct 28, 2017 08:04 AM
Ambassador
3,066,544
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Lobbying and sending out texts and emails to the members suggesting that they write to their representatives in Washington.

Oct 27, 2017 08:09 PM
Rainmaker
2,761,599
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

It's not the first time and likelynot the last time this will occur.  I have received notifications to contact my Congressmember and Senators.  The NAR is a pretty powerful lobby -- must be something about those letters regardless how they are arranged.  

Oct 27, 2017 05:36 PM
Rainmaker
331,698
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

That's a very good question BILL CHERRY 

Oct 27, 2017 04:49 PM
Rainmaker
2,346,571
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

I don't think they have thought this through! Then again, isn't that standard for Washington.

Oct 27, 2017 03:45 PM
Rainmaker
2,073,215
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

I've been inundated with requests from NAR to contact my representatives, which I have done. They are spending millions on a marketing effort with Congress.

Oct 27, 2017 03:22 PM
Rainmaker
959,959
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

NAR is a leftist organization (remember the $500,000 to "she who should not be named" for speaking at their convention a couple years ago... and they didn't even get any uranium out of it!!!) and as such is going all out with their "Red Alerts" to attack Trump's tax plan.  Every economist I've seen says this will be a benefit to the tax payer.

Oct 28, 2017 09:21 PM
Rainmaker
388,788
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

You realize that large capitalized real estate companies are buying up singe cfamily homes by the zillions., and then renting them.  Say they pay the same thing for the house as you would pay for it.  They will write off the interest, the taxes, the maintenance and depreciate the improvements.

If you, on the other hand, buy the house under the new plan, you won't be able to write off the interest, you can write off the taxes, you will continue to not be able to depreciate the building, and you will not have the luxury of depreciation.

So the house is worth MORE to the investor than it is to you, but he will figure out what you'll be able to pay, and will bring is offer down to yours. 

That, as you know, is arbitrage.  And it is working against the guy who wants to buy a home.  

Oct 28, 2017 02:50 PM
Rainer
230,788
Ken Jones, SRES, ASA, SCGREA
Focus Buyer's Broker - Neptune, NJ
Exclusive Buyer Representation

BILL CHERRY Any economist who believes that removing the home mortgage interest deduction will damage home values isn't someone you should be listening to.

Example: A couple in the current 25% tax bracket with a $400,000 mortgage at 4% will pay about $18,500 in interest in their first year of repayment. That means, they currently get an income tax benefit of 25% of that $18,500, or $4,625.

Under the proposed tax plan, they'll get a total personal exemption of $12,000 EACH or $24,000 - which means - they'll earn $24,000 TAX-FREE - DOUBLE that of current levels.

If you want to look at that as if it were a taxable deduction at the same 25%, that means they're getting a tax deduction of $8,000 vs. their current mortgage interest deduction of only $4,650. So, they will benefit by almost 100% MORE than they're currently benefiting from the current mortgage interest deduction.

Id' like one of these alleged economists to explain to me how is this a bad thing for real estate values?

Oct 28, 2017 01:36 PM
Rainmaker
2,423,931
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

I have received the alerts to what Debbie Reynolds said. Both by text and emai. 

Oct 28, 2017 09:06 AM
Rainmaker
2,577,851
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Debbie Reynolds nailed this one!

Oct 28, 2017 04:12 AM
Ambassador
2,195,241
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

They are spending millions of dollars in DC with lobbying efforts that are, sadly, being poo-pooed by many agents. It IS a big deal to the middle class and in fact, Leigh Brown shared a video of this last week...

Richard Bazinet /MBA, CRS, ABR wrote a post about it last week as well.

Oct 27, 2017 07:05 PM
Ambassador
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Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Abolish the IRS.  Then we don't need any deductions.

Oct 27, 2017 05:30 PM
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

See the answer from Debbie Reynolds

Oct 27, 2017 03:17 PM
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

Seems there are a lot of changes coming to real estate financing part.... 

Oct 28, 2017 11:42 PM
Rainmaker
475,348
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

I don't think it will happen because it impacts far too many voters that depend on it.

Oct 28, 2017 08:05 AM
Rainmaker
3,894,453
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Lobbying.

Oct 28, 2017 07:32 AM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I sure hope they shoot this down. I wish each idea like this had the name of legislator that came up with it

Oct 28, 2017 04:56 AM
Rainmaker
3,304,415
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It will be doing a lot of talking but not much action I believe

Oct 27, 2017 05:32 PM
Rainmaker
2,182,087
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

NAR is always late to the party....and I will add out of touch too

Oct 27, 2017 04:49 PM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding and Marketing

Bill,

Debbie Reynolds gave you the solution.  A

Oct 27, 2017 04:00 PM
Rainmaker
3,677,868
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

They have call to action letters for us to send..

Nov 01, 2017 05:22 AM
Rainmaker
3,192,581
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I did get the Call to Action and responded, but sure looks like it could pass this time.  

Oct 31, 2017 07:20 AM
Rainmaker
2,341,255
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

 hope they are doing something byut not sure.

 

Oct 30, 2017 11:35 AM
Rainmaker
1,601,691
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Asking for $$$

Oct 28, 2017 06:26 AM
Rainmaker
593,371
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

If I am reading the responses correctly, everyone supports the idea of the tax payer supporting the real estate industry.

In essence a industry propped up by the government.

That seems UN-AMERICAN.

But, since real estate agents, of which I am one, benefit greatly, I'm all for sustaining a monopoly business with tax payer dollars.

Before we get too carried away, let us agree that what the subject matter  relates directly to the interest rates imposed by lenders.  This is a BANKING issue inherited by the real estate business.  Keep the issue focused on LENDERS NOT REAL ESTATE.

What are the lenders doing to protect the deduction?

Oct 28, 2017 04:45 AM
Rainmaker
779,244
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Do not care what their motivation is.....  

Oct 27, 2017 04:40 PM