NAR Expresses Concern Over Proposed Limitations on Real Estate Investment

The limitations could negatively impact the health and growth of the commercial real estate market.

On Tuesday, September 7, 2021, the National Association of REALTORS® (NAR) raised concerns in a letter issued to Congressional leadership of the tax writing committees regarding the proposed limits to tax benefits for real estate investment.

At a time when the U.S. is in serious need of an elevated housing supply, NAR has addressed several of the proposed policy changes that, if left unchecked, could have detrimental impacts on the housing industry.  These changes include:

  • Limiting the use of 1031 Like-Kind Exchanges;
  • Increasing the capital gains tax rate; and
  • Taxing unrealized capital gains at death (for owners of capital assets above a certain level).

DAAR joins NAR in urging lawmakers to carefully consider any revenue raising provisions and take into consideration the current housing supply crisis.  The current position of the real estate market does not provide many (if any) opportunities for low-income and middle class families to purchase/own a home. In various parts of our country, including right here in Loudoun County, Americans are struggling to find stable and affordable rental housing. These conditions limit the growth potential of individuals, families, and our nation’s economy.

For NAR’s update on the proposed limitations, click here.

To read NAR’s Letter to the leadership of the House and Senate tax writing committees, click here

For questions, reach out to DAAR’s Government Affairs Director.

For more advocacy and legislative news, please visit DAAR’s In The News page. 

September 17, 2021