Realtors® raise alarms over real estate tax proposals

As President Bush’s advisory Tax Reform Panel completes its work, the board of directors of the National Association of Realtors® formally voted to oppose proposals under consideration by the panel that NAR believes would drive down real estate values, have a devastating effect on the nation’s housing economy and negatively impact the nation’s economy.

The panel is considering recommending that Congress convert the mortgage interest deduction from a deduction to a tax credit; is also considering reducing the $1 million cap on mortgages to the local FHA loan limit; repealing the deduction for property taxes, as well as other state and local taxes; and raising the amount of gain to be excluded on sale of a principal residence but reducing the frequency in which the exclusion can be taken.

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