It’s All About the Details…
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….Â
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.
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:Â
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.Â
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What about the tax incentives/write-offs for 1099 appraisers? How is this going to affect our business? Anybody knows?
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?
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
They are not going to eliminate the mortgage deduction so relax! More fake news by the liberal left.
It’s not fake news, this is a proposal
Ross – Its a political talking point – No one in their right mind intends to eliminate home mortgage. You start by putting everything on the table and letting Congress hash it out. When a Bill leaves the House lets see what it has…then see what the Senate is proposing.
You think it’s a talking point, I think this time around it’s being a bit naive.
This time around? Are we talking the current body of representatives or the past 100 year track record of botching the job. Smaller government is better government. Until they can learn to manage money better, I vote for giving them less of it.
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.
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.
The “death tax” only effects a small percentage of estates.
When did the measure of right and wrong become how many people it affects? Slavery ‘only‘ oppressed less than 8% of the population and less than 5% of people ‘owned‘ slaves. Who would argue THAT was ok based on it only affecting a relatively ‘few’ people? How about murder? Only affects a relatively few people. Make that OK on that basis?
Ross, those affected by it are not all rich folks. My job at IRS when I worked there was to review real property values subject to estate and gift taxes.
The taxes are on the interests conveyed – not those received. An eleven million dollar estate may seem like a lot but by the time it is apportioned to the recipients its far less.
Nominally $4,180,000 is taxes due (assuming this were a net FMV figure). Thats a LOT of money.
So the estate beneficiaries get $6.82. Sounds like a lot right? Say its a farm. The recipients either have to mortgage it now to pay the taxes, or sell it. How is that fair or equitable?
Say its six apartment buildings for 6 kids and 12 grandkids. Sell half to pay the taxes? How about NEXT years short term capital gains on the sale of the property for the purpose of generating the cash to pay the estate tax?
The ONLY things estate (death taxes) due is to steal money from the life’s work of people AND to provide for full employment of $500 an hour tax attorneys, and CPAs (that are as often as not retired IRS agents).
I haven’t even touched on estate costs where opportunists attempt to steal the estate (often successfully since IRS couldn’t care less who actually pays the tax).
Ross, Im a union organizer. Hardly a Wall Street defender, but in honesty if we don’t rewrite the entire tax codes (they are multiples by the way) we will continue to promote corruption among politicians; and make criminals of those simply trying to protect what they earned (and already paid taxes on several times over).
Wealthy and poor alike.
The wealthy are not our divine right financial targets. They provide investment and jobs. I cant advocate for labor benefits or professional recognition from people that dont have any money.
Lets all honestly debate a specific budget and agreed necessities. THEN decide whether we can or where to cut taxes. Either way, the hundred thousand plus page tax code(s) needs to be redone. In 1916 it was a page and a half return form. One anyone could fill out in about five minutes. BUT STOP the selective punitive taxes and at same time stop ALL the special interest tax breaks (like sports franchises).
Right now there is no specific bill to cut taxes. Merely an outline. Whether you demand higher or lower taxes, focus on a fair plan – not partisan talking points.
PS – I didn’t even complain that this is an appraisers blog – not a generic or partisan political debate site.