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Big Win For Realtors Reported Please Read

By
Real Estate Agent with HomeStarr Realty RS143922A

helpfulhannahs.com

 

I was reading an article today and thought I would share this with everyone as I found it to be very interesting .This News brief was seems to be a big win . Please read and let me know what your opinions are .. Be sure to read the IRS summery at the end .

 

Big win for Realtors®: IRS’s guidance on pass-through income
The IRS released proposed regulations on the new 20 percent business income deduction for pass-through businesses. The deduction was part of the big tax law Congress passed at the end of last year, and it was a huge win for Realtors®. But it was unclear who would be eligible for the deduction. Now that proposed regulations are out, it’s clear the new deduction will be available to a wide range of real estate professionals.

 

Under the new law, individual owners of sole proprietorships, including independent contractors, and owners of S corporations, LLCs or partnerships can take the 20 percent deduction on their net qualified (that is, ordinary, non-investment) business income. The calculation will depend on income thresholds, what type of business you own, and how you meet certain wage and qualified property tests. But the basic structure is very favorable to you as a small business or independent contractor. Realtors® were integral to the favorable interpretation in the proposed rules.

 

The national association made a forceful case—both in a detailed letter it sent in June and in a face-to-face meeting with IRS officials in early August—that certain limitations on specified service businesses were not intended by Congress to apply to real estate professionals. And that’s the interpretation the IRS has ended up taking. The new deduction is available for tax years beginning after Dec. 31, 2017. You’ll be able to claim it for the first time on the 2018 federal income tax return you file next year. Look for detailed NAR guidance by mid-September. It’s a complicated provision and how it works for you will depend on many factors unique to your business structure and your income. As always, consult with your accountant or tax attorney on how this deduction should be applied in your situation. Read the IRS summary with link to FAQ here.
Source: Nar.realtor; 8/9/2018

 

Posted by

Hannah Williams is known throughout Philadelphia as HelpfulHannah – and if you’ve spent more than five minutes with her, you know exactly why. She’s an expert at anticipating people’s needs, she has a real feel for real estate, and she’s an accomplished problem-solver.

Hannah has been helping people buy and sell homes all over Philadelphia since 1984. Many of her clients purchased their first, second and even third homes with her expert help, and Hannah wouldn’t have it any other way.

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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Hannah,

Thank you for sharing this with us, and I printed it for our records.  Wishing you a great week.  A

Aug 17, 2018 02:45 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Laura Filip  Oh my I would never attempt to do my own

Endre Barath, Jr. Thank goodness for my accountant .What would I do without him . Do not want to find out

Sheri Sperry - MCNE®  I am sure he will be telling you all about it

Thank you for your thoughts

Hannah

Aug 17, 2018 03:07 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

marti garaughty So appreciate that you find it

Feature Worthy

Thank you

Hannah

Aug 17, 2018 03:08 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

George Souto  Yes indeed so glad to read this had to share

Ron and Alexandra Seigel So glad you also found it useful

Thank you both for your comments

Hannah

Aug 17, 2018 03:11 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Still one of those things I need to figure out.  Create and LLC or some other form, or not?

Aug 17, 2018 05:31 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hey sista,
That's great info and good news.  Glad I don't have to worry about that stuff any more.

Aug 17, 2018 05:53 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I read that earlier in the week and had also gotten a  bulletin from our accountant. Finally we get a break. Have a good weekend, Hannah.

Aug 17, 2018 07:14 PM
James Dray
Fathom Realty - Bentonville, AR

Morning Hannah.

Sounds like standard government double talk.  On one hand they say you can, on the other they said it was not intended for real estate agents. I'll let my CPA figure it out

Aug 18, 2018 01:15 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

This should save us some money on taxes that we have to pay, but I still don't see why we should be penalized at all for owning our own business, as that seems to go against the American way.

Aug 18, 2018 05:44 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Hannah Williams,

I will as I always have defer to my CPA but will be having a conversation with him about this. Thank you for the heads up!

Aug 18, 2018 06:31 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I"m also grateful for the heads-up Hannah. This is something we'll share with our tax person. Greatly appreciated. D 

Aug 18, 2018 07:40 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Good question Liz and Bill Spear 

Carol Williams  I love listing and selling

Debbie Reynolds  Great news indeed

Thank you for reading

Hannah

Aug 18, 2018 08:57 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

James Dray  You think it is a negative interesting

Brian England  looks like negative #2

Dorie Dillard  My head can never figure out taxes I leave it to my account also

Debb Janes EcoBroker and Bernie Stea JD  I would not dream of doing my own taxes but I am glad to hear this .

Thank you for reading

Hannah

 

Aug 18, 2018 09:02 AM
Brian England

I think it is positive Hannah Williams , I just meant that it is a bit unfair that we even have to pay a self employment tax on top of the regular tax bracket that we fall within.  America is supposed to be an entrepreneurial nation, right?

Aug 18, 2018 09:26 AM
Debb Janes

Hannah Williams I've actually done ours in the past. Won't do it now that we are our own Brokerage. 

Aug 18, 2018 09:26 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Hannah Williams, thank you for pasting this on to us here in the rain.  Hope you are doing fine.

 

Aug 18, 2018 03:01 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

A great heads up for those that may have missed this news Hannah Williams .  My CPA has been watching the changes closely

Aug 18, 2018 03:28 PM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

On the surface, it sounds great! Where do I sign up? ;-)

It will be interesting to follow the developments, and of course, share this info with my CPA. Thank you!!!

Aug 20, 2018 11:48 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Good infomation here Hannah, and also the additonal link you provided. A call to the accountant is due...

Aug 20, 2018 03:00 PM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Hannah and this is a wonderful post and featured to the group:

EXPRESS WITH WORDS AT ACTIVERAIN

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Aug 20, 2018 05:59 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Hannah- - -thank you for sharing this very interesting news. Food for thought.  Definitely. 

Sep 02, 2018 02:54 PM
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

I am going to make sure my CPA has this... wish it was for 2017 too!!!  

thank you for sharing such hopefully GOOD news! 

Sep 16, 2018 12:22 AM