MTAR Member News February 4, 2019
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1 MTAR Member News NEW IRS QUALIFIED BUSINESS INCOME RULES GOOD FOR REALTORS Inside this issue: MTAR Calendar, Affiliate Spotlight, C2EX program Education Calendar, The CE Shop, Feb. TREC Core class at MTAR, Designations in 2019 RPAC Bowling coming in February; Hill Day set for February 13 Member Birthdays, NAR MVP Offer, WCR Luncheon meeting Feb Recently, the Treasury Department and the Internal Revenue Service issued final regulations regarding the new 20 percent deduction on qualified business income. As Americans begin preparations for the 2018 tax filing season, real estate professionals have been uncertain about the true impact of the 2017 Tax Cuts and Jobs Act on their respective businesses. Friday s ruling from Treasury and the IRS, however, signaled a significant victory for the real estate industry and for many of the National Association of Realtors 1.3 million members. Friday s ruling is a result of several months of advocacy and collaboration between NAR, our members, and the administration, said NAR President John Smaby, a second-generation Realtor from Edina, Minnesota and broker at Edina Realty. These final guidelines will allow real estate professionals to benefit from the Section 199A 20 percent pass-through deduction, a move that will empower Realtors to expand their operations and provide improved services to consumers and potential homebuyers across the country. The National Association of Realtors is grateful for the openness and transparency encouraged by Treasury and the IRS, and we thank them for their hard work to ensure the real estate community was heard throughout this rulemaking process. A central component of the new tax law is a reduction of the corporate tax rate from 35 to 21 percent. However, since nine out of ten American businesses are structured as pass-through entities rather than corporations, the Section 199A provision provides critical tax deductions for small businesses and self-employed independent contractors, which is how many real estate professionals are classified. Within the 247-page rule issued last Friday, three major provisions for real estate professionals stood out as critical victories for members of the National Association of Realtors. Most importantly, the regulation clarifies that all real estate agents and brokers who are not employees but operate as sole proprietors or owners of partnerships, S corporations or limited liability companies are eligible for the new deduction, which can be as high as 20 percent. This includes those whose income exceeds the threshold of $157,500 for single filers and $315,000 for those filing a joint return. Your career s best insurance The REALTOR Party is a powerful alliance of REALTORS and REALTORS Associations working to protect and promote homeownership and property interests. The REALTOR Party is designed to leverage our association s best asset our members. REAL- TORS do so much more than list & sell property. They are community builders dedicated to improving their towns, cities, states and America. They do this because it s good for the economic and social well-being of all citizens. They do this because it s good for business GOAL $25 FOR EVERY MTAR MEMBER!! Second, the rule simplifies the process that owners of rental real estate property must follow to claim the new deduction. As written in the Tax Cuts and Jobs Act, only income that is from a trade or business qualifies for the 20 percent write-off. However, because this distinction was not clearly defined by Congress when crafting the law, various court rulings and prior IRS guidance have caused confusion among tax professionals in determining which rental properties were merely investments and which could accurately be considered a business enterprise. NAR strongly urged Treasury and the IRS to simplify the rules in order to give millions of rental real estate owners certainty surrounding their ability to qualify for this new deduction. Friday s final regulations included a bright-line safe harbor test requiring at least 250 hours per year spent on maintaining and repairing property, collecting rent, paying expenses and conducting other typical landlord activities. Finally, within the proposed regulation released last August, those who had exchanged one parcel of real estate under Section 1031 for another parcel were unfairly denied deduction eligibility. However, NAR and multiple additional trade groups concerned with commercial real estate were vocal in highlighting this shortcoming. In a positive resolution to the situation, Treasury and the IRS recognized the initial ruling was misguided and corrected the policy in Friday s final guidance. NAR maintained consistent and coordinated communication with Treasury and the IRS throughout this rulemaking process. The finalized ruling, which represents a tremendous win for real estate professionals across the country, is a direct result of that engagement, said Shannon McGahn, NAR Senior Vice President of Government Affairs. We are thrilled to see our members emerge from this process so favorably, and we thank Treasury and the IRS for all of their hard work in ensuring consistency and clarity within these policies as America s 1.3 million Realtors begin filing their 2018 tax returns in the coming weeks.
2 Page 2 MTAR Calendar of Events Tuesday, Feb. 5 1:00-2:00 Member Service Cte. mtg. Wed-Thur, Feb :00-2:30 RealTracs training, MTAR office, register online at Wed. February 6 1:00-2:00 RPAC Committee meeting, MTAR office 3:00-4:15 Meet & Greet the 2019 TN REALTORS Leadership Team, MTAR office Monday, Feb. 11 9:00-12 noon TREC Core Class, MTAR, 6 CE hours, $45 Tuesday, Feb :00-2:30 RealTracs training, offsite, Coffee Co. Adm. Bldg., Manchester, register online at realtracs.net Wednesday, Feb. 13 9:00-10:30 Board of Directors meeting, MTAR 12:00 4:00 MTAR Day on the Hill, bus ride to Capitol Hill Thursday, Feb. 14 Monday, Feb. 18 President s Day Holiday, MTAR offices will be closed. Wednesday, Feb. 20 2:00-3:00 MTAR Gov t Affairs Cte. Mtg Thursday, Feb. 21 9:30 10:30 Education Cte mtg. Wednesday, Feb :15-12:00 9th Annual RPAC Bowling, Tullahoma & M boro The C2EX Platform Professional Reputation (Tasks to Accomplish) Just a sample of the easy task that complete this section. Try it!
3 Training & Educational Choices for MTAR Members! FEBRUARY CE CLASSES February 6-7 RealTracs training at MTAR; RT Basic, Listing Management, Advanced RT and RealTracs Plus, register at February 11 TREC Core Course, MTAR office, 6 CE, 9:00-4:00, $45 February 12 RealTracs training, Manchester, 10:00-2:30, 4 CE February Cram Week four days of CE classes for you! Page 3 Enroll today: mtar.theceshop.com/ Promotion expires February 28, 2019 COMING IN 2019! May November 21 Sponsored by: November 22 PLUS TWO LIVE STREAMING CLASSES FROM TN REALTORS JUNE 7 & JULY 24 MTAR EDUCATION CANCELLATION POLICY MTAR follows the Murfreesboro City Schools weather policy. If the City Schools are closed for inclement weather conditions, classes are cancelled and a make-up date will be announced at a later date, schedule and instructor time permitting. Check the MTAR website and Facebook page for updates and notices.
4 Page 4 We are planning a Day on the Hill for February 13, Please keep the day open if you are interested in visiting with all the Bedford, Cannon, Coffee, Franklin, Grundy, Marion, Moore and Rutherford County representatives. Watch for details to come. Transportation will be provided. RPAC Bowling is coming soon. Get your teams together and register by February 14 for the February 27 prelims at Tullahoma Lanes in Tullahoma or at Lanes, Trains, & Automobiles in Murfreesboro, Then practice, practice, practice so that your team will make the finals
5 M i d d l e T e n n e s s e e A s s o c i a t i o n o f R E A L T O R S 311 Butler Drive Murfreesboro, TN Phone: Toll Free: Fax: MTAR MEMBER BULLETIN BOARD YOUR OFFER DATES: February 1-15, 2019 YOUR ACTION: Register for any 2019 NAR Tech Edge event YOUR REWARD: The 4 Secrets to Real Estate Success Webinar Download valued at Join us for one of our series of one-day tech conferences around the U.S. designed for agents who are eager to learn how new technologies impact their real estate business. Sessions are presented by NAR speakers and local experts, and teach agents mobile marketing, reputation management, content creation, and more! Leesa Hammond Jackie Barnes Austin M. Warrick Samantha Saine Joe Hafner Katrina Waldrip Leslie Denney Jensi Pendergrast Allison Brownlow Duran Clark Melba Carr Gayle Wright Angie Smith Amanda Johnson Dana Milby Tyler Henley Gina Pagani Andy Chavarria Jamie Brabham Minerva Salazar-Lopez Betsy Hill Lora K. Pratt-Umbarger Dwane Crews Mark S. Whitten Erica Cosminsky Edwards Gwen Stafford Tony Grissom Mack Meeks Kent Earp Trey Randolph Shauna Mason Jamie Logan Janie Parks Shannon S. Ball Gregory Goff Kim Wilson Candice Thornton Manya Alvizo Jontae Hall Amy Mabry Diane J. Stockard Misty Sanders Michael Hendrickson Steve Richardson Cindy Bush Ray Erin Stroop Registration is now open and starts at just $49. Plus, any registration between February 1-15, 2019 earns you a free webinar entitled The 4 Secrets to Real Estate Success Webinar from the REALTOR Store! Choose any one of 8 events across the country. Simply register to attend, and within 48 hours of registration you'll receive the link to order/download your reward using a unique coupon code. Is there someone you should thank for a job well done? Tell your fellow REALTORS and fabulous Affiliate partners that you appreciate them! Join us on Valentines Day to learn more about "The Future of Rutherford County-2019 Mayors Panel. " Thursday February 14 from 11-1 at the Remington Room in Smyrna. $15 for WCR Members. $20 non-members. Lunch included. Tickets available below ? fbclid=iwar2cnkuwjjg3tqeduxufjh5sevprnfj1e9flvghhbt6yyvx2pgo2m r-54zg
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