In recent years, Congress has been interested in a major overhaul of the federal tax code. In 2014 (during the 114th Congress), then-House Ways and Means Committee Chairman Dave Camp released a discussion draft for comprehensive tax reform discussion draft that included substantial changes to both the individual and corporate income tax systems, reducing statutory tax rates for many taxpayers, while repealing dozens of credits, deductions, and other tax preferences.
Impact to the Industry
A change in taxes could affect the choices made by millions of homeowners and small businesses, like many ALTA members, around the country. Sixty-five percent of ALTA members are small businesses who employ an average of three people. The choices consumers make following any tax reform will affect ALTA members who operate in every county in the United States.
ALTA Policy Statement
ALTA Board Statement on ALTA's Priorities (adopted February 2015)
In 2015, the Board of Governors of the American Land Title Association will work with Congress and the Administration to: (1) ensure implementation of TILA/RESPA Integrated Disclosures is as smooth as possible and improve how the CFPB works with ALTA members; (2) promote responsible reform of our nation's housing finance; (3) improve FHA's onerous rules for title clearance of REO property and condo eligibility; and (4) advocate on tax policies important to ALTA's small business members and their real estate customers.
ALTA is targeting three areas of reform in the real estate sector that should remain largely intact in the tax code. These three provisions enjoy bipartisan support on Capitol Hill, and are also supported by a broad coalition of real estate industry groups:
- Mortgage Interest Deduction
- Capital Gains Exclusion on the Sale of a Principal Residence
- Section 1031 Exchanges
September 12, 2016 - HRC 1031 letter