NAR & Lawmakers

One function of the National Association of REALTORS that very infrequently gets attention is the work the organization does to protect the interests of homeowners nationwide with lawmakers in Washington DC. Though limiting the mortgage interest deduction (MID) has been a topic of conversation recently, there has yet to be a proposal introduced into Congress specifically targeting this area of homeownership. Nevertheless, the National Association of REALTORS has continued to let Congress know that any such proposal to limit the MID would be vigilantly opposed. This past year as the “Fiscal Cliff” loomed there were several proposals on the table which were tied to the legislation introduced and directly affected homeowners.

NAR continues to protect the ability of American families to own a home and its members were vocal in their support of several key tax measures of critical importance to homeowners. Among the measures extended by the “Fiscal Cliff” legislation as published in the January/February NAR REALTOR magazine were:

1. Mortgage cancellation relief is extended for another year – Households that have mortgage debt forgiven by a lender in 2013 as a result of a modification, short sale, or foreclosure will not have to pay tax on the amount forgiven.
2. Mortgage insurance premiums remain deductible – Tax filers making less than $110,000 who pay for mortgage insurance can deduct the cost of their premiums on their 2012 and 2013 tax returns.
3. 15-year straight-line cost recovery on leasehold improvements is extended – For qualified leasehold improvements on commercial properties, 15-year depreciation is extended through 2013 and made retroactive to cover 2012.
4. Energy efficiency tax credit remains in force – The 10% tax credit, up to $500, for homeowners who make energy efficient improvements to an existing home is extended through 2013 and made retroactive to cover 2012.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.