Colorado Association of REALTORS | Tax Reform Update
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Tax Reform Update

Tax Reform Update

There have been a number of developments in Washington, DC to share with you.

 

TAX REFORM:

Both the House and Senate have named the members of the conference committee.  The committee will begin meeting next week, its goal is to send a final bill to the President by December 15, 2017.  NAR will continue to run the Call for Action until the committee finishes the legislation.

 

The Call for Action will now include language on State and Local Tax deductibility.  Although the two bills have the exact same language, discussions are ongoing to make changes during the tax conference negotiations.  This has created an opportunity for NAR to seek an expansion of the tax deduction to include income taxes, an increase in the cap and indexing the cap to inflation.

 

Thank you to everyone for your help in setting a new bar for response rates with the previous CFA.  Over 213,000 REALTORS responded to the first tax reform CFA and were instrumental in changing some provisions within the two versions of the bill.

 

But, our work is not done – a new CFA is liveWe’re asking for everyone’s assistance in spreading the word as we work to preserve the mortgage interest deduction and the current laws regarding capital gains.  You can read more about the CFA and these provisions at the Realtor Action Center and at the NAR Tax Reform Portal.

 

Action Center: http://realtoractioncenter.com/

Portal: https://www.nar.realtor/tax-reform

 

What’s new in this CFA:

The Call for Action will now include language on State and Local Tax deductibility.  Although the two bills have the exact same language, discussions are ongoing to make changes during the tax conference negotiations.  This has created an opportunity for NAR to seek an expansion of the tax deduction to include income taxes, an increase in the cap and indexing the cap to inflation.

 

Here are some good resources for how the tax reform plans could affect Colorado:

 

https://www.nar.realtor/taxes/tax-reform/how-tax-reform-impacts-homeowners-in-each-state

Side-by-side comparison of House & Senate Tax Bills

Tax Reform Impact State-by-State data

Tax Reform’s Possible Effect on Housing Prices by Congressional District

Second Homes by CD

Second Mortgages by CD

 

FLOOD INSURANCE:

Congress is expected to pass a short-term Continuing Resolution (CR) to keep government operations open beyond the current December 8, 2017 deadline.  The CR will extend the deadline for a government shutdown until December 22, 2017.  The CR will include an extension of the National Flood Insurance Program until December 22, 2017.  Congress will use the two-week window to address a longer term CR.

 

NET NEUTRALITY:

The FCC will make significant changes to the operation of the internet by eliminating the Net Neutrality rules currently in place.  NAR has been a strong supporter of maintaining Net Neutrality and will work with Congress, like-minded groups and the telecommunications industry to create e a legislative remedy that protects consumers and businesses.

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