Title Action Network Alert Urges Senators to Protect Key Tax Provisions
|July 23, 2013
The Action Network issued an alert today (July 23) urging members to ask their U.S. Senators to protect specific tax incentives that benefit the land title industry and its customers.
The Senate Finance Committee has started the process of reforming the United States’ tax code. At risk are important tax deductions and credits that support homeownership and investment in commercial real estate. The deadline for Senators to submit a list of which tax deductions and credits that should be included is Friday, July 26.
ALTA has identified the following tax provisions that should be included in a new tax code:
- Mortgage Interest Deduction and Real Property Tax Deduction: These deductions make homeownership more affordable.
- Exclusion of Capital Gains Tax on the Sale of Principal Residence: One quarter of Americans’ wealth is in their home equity. An individual’s ability to have taxes excluded on up to $250,000 of the gain realized on the sale or exchange of their home makes mobility easier and more affordable.
- Deferral of Capital Gains Tax on Like-Kind Exchanges: Allowing investors to defer the tax on capital gains when they sell and buy “like-kind” properties, or 1031 exchanges, encourages more activity and investment, which is good for economic growth and job creation.
- Depreciation of Real Estate: It makes sense to have depreciation periods for commercial and residential real estate match its useful life.
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Additionally, Michelle Korsmo, ALTA's chief executive officer, sent a letter July 23 to members of the Senate Finance Committee asking for support of tax provisions important to housing and real estate, which ultimately impact overall recovery of the economy.
"Homeownership has long been the primary way American middle class families have built personal capital," Korsmo wrote. "In 2010, home equity accounted for 29.5 percent of all family assets in the United States. For the middle class it was closer to 40 percent to 50 percent of family assets2. Tax provisions supporting homeownership are a critical part of a strong housing economy."
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