I make no apologies here for being a loyal supporter of NAR, and I am grateful for being a aprt of leadership as a 2016 Regional Vice-President. This doesn't mean that I am an NAR syncopant, becasue I have no trouble expressing displeasure at some things that NAR does. I also know that at times the problem is not NAR, it is political forces within the industry that may not have our best interest at heart.
But one area that NAR is outstanding is advocacy both nationally and locally. This is why my annual RPAC participation which has been $3000 a year is going to $5000 a year becasue this is where we get our best value by being a member. I won't take the time to tell you about what NAR RPAC funds and expertise has helped our state and maybe that comes later. Right now I want you to see what the NAR lobby was able to accomplish with President Obama signing the Omnibus Spening Bill. This is a copy and paste from NAR:
The items listed represent major accomplishments for NAR’s Public Policy agenda. NAR’s sustained advocacy efforts through the 114th Congress have resulted in these policy wins.
NAR Priority Issue Success are indicated in italics
The real estate related provisions are listed below:
Federal Tax Policy
- Mortgage Debt Forgiveness: Authority extended for two years (2015 & 2016)
- Immediate Expensing of Business Equipment and Certain Real Estate: The expensing provision for equipment and certain real estate used by small- and mid-sized businesses is made permanent (section 179). The real estate includes leasehold improvements, certain restaurant improvements, and certain retail improvements. Moreover, the $250K cap on this qualified real estate (which is half that of personal property) is being removed starting in 2016, so all business assets (real and personal) will have the same $500K limit each year, and indexed for future inflation.
- Bonus Depreciation: extends bonus depreciation treatment for five years. Moreover, the provision now includes a new category called “Qualified Improvement Property,” which is defined as an improvement to the interior portion of an existing non-residential commercial building (except for elevators, escalators, or enlargements). Thus, most leasehold improvements will now generally be eligible for immediate expensing for the smaller and mid-size businesses and for bonus depreciation (50% expensing) for the bigger companies.
- Charitable Deduction – The expired provision that gives a charitable deduction for contributions of real property for conservation purposes is made permanent.
- Foreign Investment in Real Property Tax Act (FIRPTA) – The bill includes two significant FIRPTA provisions. The first allows overseas investors to own up to 10% of a publicly-traded U.S. REIT (up from 5%). The second provision allows foreign pension funds to own U.S. real property interests without triggering FIRPTA withholding tax. These changes are estimated to bring billions of dollars of foreign investment into the U.S. commercial real estate market.
- Energy Tax Credit for New Homes – The expired credit of $1,000 to $2,000 for energy-efficient new homes is extended for two years (2015 & 2016).
This helps troublewd homeowners needing to do a short sale to avoid foreclosure, it helps the commerical industry, and with Foreign Investment part it will bring in billions to US real estate. On the last part as a recepient of European pension funds investing millions with me in Oklahoma City, I have already been in contact with my sources in London and more is coming. Never doubt that despite being outspent because of Citizens United, the impact of the largest trade organization in the world, The National Association of REALTORS®, goes beyond money. The money is important but have 20% of members respond to a call to action so that Fannie mae funds were not raided to pay for the highway transportation bill is another victory not just for us, but more importantly the American public that we serve.
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