Over the last decade, with the growing federal debt, slow economic recovery, and continued growth of tax complexity, New Jersey Realtors® has worked alongside NAR on the issue of tax reform. Tax reform carries high stakes for real estate professionals and anyone who owns real estate. Modifications to the existing system that detrimentally impact the economics of homeownership and real estate investment are non-starters.
As it stands, nearly two-thirds of Americans own their homes, and a high percentage of tax benefits go to households with less than $200,000 of income. Many real estate investment decisions have been made with the current tax law factored in. Changing the rules on existing investments that eliminate tax deductions for homeowners would harm economic recovery and future job creation.