U.S. Rep Aaron Schock met with Illinois REALTORS® to discuss federal real estate and taxation policies, and to hear updates on the market in central Illinois.
Schock, a Republican first elected to the U.S. House in 2008, spoke at the Illinois Association of REALTORS® headquarters in Springfield as part of the Let’s Talk Real Estate series. The meetings with federal officials allow for an exchange of information on the industry.
Schock told REALTORS® at the Thursday, Aug. 14, 2014, event real estate is close to his heart. The Peoria resident still has a hand in real estate development.
REALTOR® Pat McCarthy facilitated the discussion after introductions by Michael D. Oldenettel, IAR’s immediate past president. Among issues addressed:
Market Place Fairness Act: This measure, which would require online retailers to collect sales taxes, has met opposition. But Schock said he supports the measure.
“To me, this is arguing on the basis of fairness and equity,” he said.
But he acknowledged the bill was a hard sell for some. “Nobody likes paying taxes.”
Currently, purchasers of goods over the Internet are required to pay state sales taxes. The law requires that if a purchaser does not pay the taxes at the point of sale, then they must be factored into a tax return filing.
1031 Exchanges: According to NAR, Section 1031 of the IRS Code “allows investors to defer capital gains taxes on the exchange of like-kind properties.” The exchanges are particularly used in commercial and agricultural transactions.
Schock noted his second real estate deal was a 1031 Exchange. “You are not going to find a bigger believer,” he said.
He said that the 1031 Exchanges are particularly important in the Midwest where many real estate deals involve agricultural property. While there are proposals to remove the provision from the tax code, Schock said he thought it likely the code will be maintained.
Illinois REALTORS® Ed Neaves, Phil Harvey and Steve Myers gave local market updates.