NEWS

A letter from Governmental Affairs Director, Frankie Elliott, regarding President Biden's 2021 Tax Proposals

I wanted to take this opportunity to respond to several calls and emails I have received since the President's State of the Union address last week. I sincerely appreciate your willingness to reach out and share your concerns with me.

Like you, I am concerned about the President's tax plan, especially the potential changes to 1031 Like-Kind Exchanges and the capital gains tax. Please know, we all understand the importance of protecting these two tax incentives, not only for real estate investors but also for the health and stability of our economic recovery.

Several of you have asked that ACBR reach out to our congressional delegation and encourage them to oppose any changes to these investment programs. As many of you know, ACBR works in collaboration with the Georgia Association of REALTORS® (GAR) and the National Association of REALTORS® (NAR) for advocacy efforts and advancing our public policy agenda. This three-way agreement is the reason NAR will take the lead regarding these tax proposals. And rest assured, they are on it!

In a letter posted March 16, 2021, NAR joined numerous allied organizations, such as the Mortgage Bankers Association, NAIOP, the Commercial Real Estate Development Association, the National Apartment Association, National Association of Home Builders, the Conservation Fund, and the Nature Conservancy, to remind congressional leaders of the critical role real estate investment plays in the health of our economy. This message to Congress also stressed that Gains reinvested in new property through an exchange create a ladder of economic opportunity for small and minority-owned businesses and entrepreneurs and generate much-needed tax revenue for states and localities. REALTOR® Magazine has posted a statement regarding this issue as well.

In addition, NAR has included the protection of the 1031 like-kind exchanges in their 2021 Federal Talking Points, which is currently being discussed with all members of Congress as part of NAR's Legislative Meetings, starting this week.

As you may recall, our combined efforts helped save the exclusion for capital gains on the sale of a home and preserved the like-kind exchange for real property once before as part of the 2017 tax bill.

I am confident that with the efforts of NAR leadership and staff and with GAR and ACBR support, we will once again successfully defeat any significant change to these tax provisions.

Similarly, I wanted to share that NAR supports the bold new initiative to encourage investment in economically depressed areas throughout the U.S. through Opportunity Zones (OZs). OZs are especially attractive to real property investments by providing significant deferral and exclusions in capital gains that are reinvested in qualified areas. NAR is working to help ensure the rules implementing the new OZs fulfill their promise.

While we recognize the role ACBR plays in the federal policy process, we do have the opportunity to participate and make sure our concerns are heard. Here's what you can do TODAY!

NAR's Federal Taxation Committee meets today at 2:00 p.m. EST. There is likely to be a great deal of discussion on these issues, and you can listen to the meeting by registering, free of charge, for NAR's 2021 Virtual Legislative Meetings. If you cannot attend this meeting, NAR will likely have a copy of the committee meeting online later this week.

I also know NAR will continue to keep us informed once Congress takes up any legislation that impacts these provisions, and we, in turn, will continue to keep you informed as well.

Please feel free to contact me at frankie@atlcbr.com or my cell at 407.230.8858 should you have any questions or concerns.

Monday, May 3, 2021
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