Category: Uncategorized

By Susanne Dwyer

Tax reform done right could yield savings and simplification that benefits average Americans, but history shows that misguided reforms can pose significant threats to the economy.

That’s the message the National Association of REALTORS® (NAR) brought to Congress recently as Iona Harrison, chair of NAR’s Federal Taxation Committee, testified before the Senate Finance Committee.

At the hearing, titled “Individual Tax Reform,” Harrison told senators that putting homeownership in the crosshairs of tax reform would strike at millions of American households.

“Real estate is the most widely held category of assets that American families own, and for many Americans, it’s the largest portion of their family’s net worth,” Harrison said. “As 64 percent of American households are owner-occupied, we believe that homeownership is not a special interest, but is rather a common interest.”

Over the past year, proposals for tax reform have included the elimination of important benefits like the state and local tax deduction, a near doubling of the standard deduction—which would all but nullify the benefits of the mortgage interest deduction—as well as caps to the MID.

REALTORS® have warned lawmakers that proposals to limit or nullify the tax incentives for homeownership could actually raise taxes on millions of middle-class homeowners while putting the value of their homes at risk.

In her testimony, Harrison responded to critics of real estate deductions, who often claim those deductions benefit only a small number of wealthy individuals. Harrison noted:

• 70 percent of the value of real property tax deductions in 2014 went to taxpayers with incomes less than $200,000;
• 53 percent of individuals claiming the itemized deduction for real estate taxes in 2014 earned less than $100,000;
• 7 million tax filers claimed a deduction for mortgage interest in 2015;
• Half of taxpayers with mortgages over $500,000 have AGI below $200,000., according to research conducted for NAR.

To that end, Harrison reminded the committee that tax reform efforts in the late 1980s were fraught with unintended consequences that delivered a broadside to the economy and only offered brief tax relief.

“When Congress last undertook major tax reform in 1986, it eliminated or significantly changed a large swath of tax provisions, including major real estate provisions, in order to lower rates, only to increase those rates just five years later in 1991,” said Harrison. “Most of the eliminated tax provisions never returned and in the case of real estate, a major recession followed.”

Despite the REALTORS®^‘ concerns raised during the hearing, Harrison reminded Senators that REALTORS® do support tax reform.

“Homeowners already pay 83 percent of all federal income taxes, and reform that raises their taxes is a failed effort,” said Harrison. “But NAR supports the goals of simplification and structural improvements for the tax system, and individual tax rates should be as low as possible while still providing for a balanced fiscal policy. We simply believe that to achieve these goals, Congress should commit first to doing no harm to the common interest that homeownership provides.”

For more information, please visit www.nar.realtor.

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From:: Real Estate News

By Susanne Dwyer

The National Association of REALTORS® (NAR) Power Broker Roundtable this month discusses agent adoption of technology.

Moderator:
Robert Bailey, Broker/Owner, Bailey Properties, Santa Cruz, Calif.; Liaison for Large Residential Firms Relations, NAR

Panelists:
Mike Pappas, CEO, Keyes Co. Illustrated Properties, Miami, Fla.
Dan Forsman, CEO, Berkshire Hathaway HomeServices Georgia Properties, Atlanta, Ga.
Tom Skiffington, Broker/Owner, RE/MAX 440, Perkasie, Pa.
Chad Ochsner, Employing Broker, RE/MAX Alliance, Denver, Colo.

Robert Bailey: Business technology is a billion-dollar business, and brokers invest significant dollars each year to ensure their agents are efficient, connected, and competitive. But the adoption and usage of all this new technology can have drawbacks. Some agents are slower—or less interested—in continually learning new ways to do things. Others are just too busy out there in the field to be concerned with changing technology. So, what are brokers doing today to ensure a return on their investment? And, as more agents choose to work remotely instead of from desktops at the office, what’s the impact on company culture and synergy? We’re checking in with some tech-forward company leaders. Mike, what’s your take on all this?

Mike Pappas: Well, the very fact that agents are working remotely indicates a mastery of technology. But when new systems come in, adoption and engagement are the so-called ‘special sauce’ that can make a critical difference, so we’re laser-focused on getting everyone to see the value and get onboard. At the same time, we’re very aware that everyone learns differently, so we offer a smorgasbord of emails, webinars, one-on-one training and on-site/off-site coaching opportunities so that agents can become familiar with programs on their own time and in their own way.

Dan Forsman: We’re big believers in communication, and it’s important that what we introduce to our agents is both relevant and exciting. So, we’ve instituted what we call an “Innovation Council,” made up of leaders from all our offices. They communicate to us what the agents want and need, and they also become the first-line conduits to take new innovations back to them. Then, as Mike indicated, it’s a matter providing training in enough ways and times to help bring every agent up to speed.

Chad Ochsner: I’ll second that. We host a consistent “Fourth Friday FAST” meeting, which stands for “Fantastic Alliance Services and Tools,” where, among other things, we introduce new systems and programs, in addition to new marketing partnerships our agents want to know about—like Best Buy discounts they can offer their clients. From there, branch office managers sit down one-on-one to help agents understand and see the value of newly installed technology. And monitoring is essential to track the usage.

Tom Skiffington: Most of our agents frequently work out of the office, so it’s especially crucial for them to have a technological edge. But since we’re spending some 20 percent of our outlay on technology, ROI is equally critical. When a new agent comes into the company, we set everything up for them—website, social media pages, search portal profiles, their blog, and our proprietary lead-generation system. Then we sit down and walk them …read more

From:: Real Estate News