Potential changes to tax reforms could weaken the opportunity for home owners to use the mortgage interest deduction and eliminate 1031 like-kind exchanges for commercial property owners, says NAR Senior Policy Representative Evan Liddiard in an Illinois REALTORS® video.
“When you raise that standard deduction, you get rid of all the other itemized deductions, particularly state and local tax deduction, it pretty much takes the bottom out of the MID (mortgage interest deduction) for 95 percent of the people,” Liddiard says.
Illinois REALTORS® Treasurer Dan Wagner and Liddiard emphasize the importance of like-kind exchanges. Wagner says Illinois REALTORS® and the National Association of REALTORS® are keeping a close eye on developments. See the video.