It’s All About the Details…

VaCAP Board

VaCAP Board

Coalition of Appraisers in Virginia at Virginia Coalition of Appraiser Professionals
Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.
VaCAP Board

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Tax Reform & Appraisers Responsibility to Verify Data - AppraisersBlogs

The National Association of Realtors is encouraging all members and citizens to contact their representatives concerning tax reform. Congress is considering many tax reforms including the elimination of the mortgage interest deduction. See their website for further details on how the middle class can be impacted.

Excerpt from NAR Tax Reform Call for Action:

I urge you to oppose any tax reform plan that would weaken the tax incentives for owning a home, such as the mortgage interest deduction. Additionally, please do not let a tax reform plan increase taxes on middle-class homeowners through the elimination of the state and local tax deduction.

It’s all about the details…. 

When we complete appraisals, part of our responsibility is to verify data. There are many sources we use to obtain and verify data. Some data, like assessment and tax amounts, we take for granted and just assume are accurate. Here is where we can get our selves in trouble.

VaCAP has recently been made aware of inaccurate tax information being reported in Realist, the tax reporting product from CoreLogic. Below is a snap shot from a Realist Tax Record for a property in Powhatan County. Powhatan County reassesses every 2 years and the tax rate of $0.90 per hundred has not changed. Realist is reporting a $18 decline in tax liability for this property.

Realist Corelogic incorrect tax record

Now, no one would really get excited about $18 per year, but think it through; What if it was more? Who relies on that information? Is the appraisal for a court proceeding where your appraisal will be submitted as evidence? Is the lender creating an escrow account based on this information? What if you relied on other sources that were not accurate? Could a complaint be filed against you with DPOR for a misleading report?

Many of the sources we have available are beneficial. It is important to pay attention to the details and question things that do not appear correct. Errors can and do exists. You can not control what others say or do, but you are the only one that has control over what goes into your appraisal report. Please report any errors you find so they can be corrected. Garbage data benefits no one. Stay safe.

Virginia Real Estate Appraiser Board Meeting: 

Tuesday, October 31, 2017 – 10:00 AM
2nd Floor – Board Room 4
Department of Professional and Occupational Regulation
Perimeter Center, Suite 200
9960 Mayland Drive
Richmond, Virginia 23233

Topics on the agenda include:
ASC Compliance Review
Fee Reduction Regulation
2018 Meeting Dates

See the full agenda here

Image credit flickr - Marco Verch
VaCAP Board

VaCAP Board

Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.

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12 Responses

  1. Jason says:

    What about the tax incentives/write-offs for 1099 appraisers? How is this going to affect our business? Anybody knows?

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    • Baggins Baggins says:

      The million dollar question. Like I need this from the top, talk slow for me and keep the answers very very simple, Ha. If I buy a thousand dollars worth of office equipment can I write that off or am I going to be on a flat rate? Is turbotax going to hold up? Tax reform seems so big we should vote on that right?

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  2. Jeff says:

    I’m all for eliminating the death tax which is robbing people of their entitled interest to property with burdensome taxes that are levied against a family because a family member passes away. There is absolutely no justification for this tax whatsoever

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  3. SoCalAppraiser says:

    They are not going to eliminate the mortgage deduction so relax! More fake news by the liberal left.

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  4. Bill Johnson says:

    With home ownership at historic lows, home prices at historic highs, and stagnant to declining wages within our profession, I will assume many appraiser families fall within the 50% who don’t own a home, and thus have no individual benefit from the mortgage interest deduction. Try living in a high cost area (median home price $550,000+ / desirable areas $800,000+) where lenders make every effort to pay you a national average yearly salary of (+/-$56,146). As many appraisers are no longer in the middle class, perhaps the 50% who don’t own a home will call their representatives, and encourage the permeant removal of this loophole. Be carful what you ask for.

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  5. Congress has an implied contract with American homeowners on the interest deduction. Its existed longer than I’ve been involved in real estate sales or appraising (1971).

    To modify it now is to alter my long term financial planning ten years (or 1 or 5 etc) after the decision was made.

    Various proposals have floated discussion about eliminating the interest deduction and partially offsetting it with an increase in the standard deduction. I’m less open minded on this than I was when it was first proposed. For OTHER tax adjustments an increase in standard is fine, but the interest deduction MUST remain.

    Otherwise it will create separate classes of interest deduction. The more expensive the house, the lower the deduction as opposed to what it currently is. It wont wreck the market,  but it would seriously damage it.

    Remember when the tax write offs for 2 to 4 units were reduced? Almost overnight, all the doctors and other professionals that had been ready buyers ceased buying them to shelter income.

    VaCAP is right to tell us to write our representatives, but lets also understand they have already started taking entrenched partisan positions WITH NO SPECIFIC PROPOSAL yet passed (or even a Bill proposed).

    I want the interest deduction saved because I think its part of a covenant with the American People. Other than that, Im ‘open’ to ideas.

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It’s All About the Details…

by VaCAP Board time to read: 2 min
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