Another real estate tax provision potentially up for discussion

Concept related to taxes. The enlarged magnifying glass word tax with other words related taxes in the background.

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Many in Congress are talking tax reform (which is not likely until after this year’s election).  Illinois REALTORS® are on Capitol Hill this week discussing the importance of the Mortgage Interest Deduction, the deduction for property taxes, as well as the “like-kind exchange” provision.  Another set of tax provisions that is very important to the real estate industry is the depreciation schedule.

NAR recently released a study on the economic value of depreciation provisions of the federal tax code.  This study was done with the Massachusetts Institute of Technology and other real estate groups.  The study finds that depreciation accounts for $700 billion in economic activity each year; that’s 4 percent of the national gross domestic product.

Scobey

Scobey

Current depreciation schedules are: 23 years for residential properties, 39 years for non-residential properties and 15 years for leasehold improvements.

Any effort in Congress to extend these schedules or limit the amount of depreciation will be strongly opposed by NAR and Illinois REALTORS®.

This entry was posted in Advocacy, Midyear 2016 by Mike Scobey. Bookmark the permalink.

About Mike Scobey

Mike Scobey is Assistant Director – Advocacy and Local Issues. He supervises and coordinates the IAR Issue Advocacy Program which includes the coordination and management of Issue Advocacy campaigns, inside research, outside research and polling, legal analyses of local government proposals and public relations/education projects. He is responsible for the production of educational and advocacy pieces related to the local government affairs program. He also oversees the local Governmental Affairs Director (GAD) program which includes serving as a liaison to the local GADs and other staff on issue development and prioritization and overall campaign design. He provides staff support to the Commercial/Industrial/Investment Committee.

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