WASHINGTON – May 13, 2016 – The National Association of Realtors® (NAR) told members what they can expect from Congress on some of the biggest commercial real estate issues over the coming months. NAR cited three hot topics to watch, and it offered one big caveat for 2017 during the Commercial Legislation and Regulatory Advisory Board meeting at the 2016 Realtors® Legislative Meetings & Trade Expo.
1031 Exchanges
For the second year in a row, NAR members have had 1031 exchanges on the short list of legislative priorities to talk about with members of Congress. NAR senior policy representative Evan Liddiard said he didn’t expect anything to happen on this issue in the near future, but he urged commercial practitioners to remain vigilant.
“It’s way too early to relax. I still see this as extremely vulnerable in the tax reform effort,” he said.
Crowdfunding
The Treasury Department issued a white paper this week on marketplace lending that seemed to set the stage for increased regulation. NAR’s comments on the issue were incorporated into the report, but association staffers called for more input from the Realtor community.
“This is a really new capital area,” said NAR legislative policy representative Erin Stackley. She asked members to think about how crowdfunding might change the way they finance deals or connect investors with new projects, and to add their thoughts to the discussion as Congress considers legislation to clarify or expand regulators’ actions. “We really have an opportunity to influence it before it gets written in stone,” she said.
Depreciation
Liddiard was optimistic on the issue of real estate depreciation. He said Republicans that control both the House and the Senate have traditionally favored a balanced budget over new spending – but their ideological shift toward economy- and business-boosting initiatives makes it more likely that they’ll allow businesses to deduct expenses in a more timely fashion.
“Republicans generally are backing off from strict deficit neutrality,” he said. “We can’t totally take this off the table, but we don’t have to worry as much.”
Post-election action
How much will be accomplished in a presidential election year?
Ken Wingert, a legislative representative for NAR, called for patience in the face of an already recalcitrant Congress. There is usually political stagnation during election season and the Congressional calendar creates challenges.
Wingert said that between now and the presidential election, Congress is scheduled to be in town only 48 days. “That includes the days they fly in and fly out. That doesn’t leave a whole lot of time,” he said.
But he did caution Realtors to watch for possible action during the lame duck session after the election. “Sometimes that presents opportunities, but sometimes it presents peril. That’s something that keeps people like me up at night.”
Source: Meg White, Realtor Magazine
© 2016 Florida Realtors®