Tax Issues
MBA encourages policymakers to support and enact tax laws that support long-term economic growth, which is the foundation of strong real estate markets. On December 22, 2017, President Trump signed H.R. 1, the Tax Cuts and Jobs Act (TCJA), into public law. While many of the TCJA changes impact all businesses alike (regardless of the specific industry), this comprehensive new tax law has numerous provisions that unambiguously affect the real estate finance industry. MBA supported elements of the TCJA that provided both homeowners and renters with more "take-home" pay by lowering overall tax rates and nearly doubling the standard deduction. MBA advocated for its members on many important issues during the tax reform debate. As some of these provisions are set to sunset, MBA will continue to work with lawmakers to ensure that homeowners and renters are not negatively impacted.
Tax Extenders: MBA advocates for Congress to make the mortgage insurance (MI) premium deductibility provision permanent. Servicers that are required to issue IRS Form 1098 to taxpayers need to know whether or not to report MI on the form. Congress has extended the provision retroactively many times in the past, which creates serious and costly operational issues for servicers. MBA will continue to work with the IRS to figure out a work-around that will help avoid or drastically reduce the operational issues that servicers are faced with due to the continued (and especially retroactive) short-term extensions of the provision.
Recent MBA Activity Related to Tax and Accounting Issues
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MBA Joint Letter to Congress, Administration on Pro-Growth Tax Agenda
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MBA Joint Trades Letter on the Revitalizing Downtowns and Main Streets Act
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MBA Letter on H.R. 1321, the More Homes on the Market Act
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MBA Joint Comment Letter on Proposed Changes to Rule 3002.1
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MBA Comment Letter on Proposed Changes to Bankruptcy Rule 3002.1
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MBA Letter on H.R. 7024 Floor Vote
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MBA Comment Letter to Financial Accounting Standards Board on its Proposed Accounting Standards Update
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MBA Joint Letter on House 199A Permanence Bill
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MBA Comment Letter to House Ways and Means Committee on H.R. 3936, H.R. 3937, and H.R. 3938
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Industry Coalition Letter on the Introduction of the Main Street Tax Certainty Act of 2023
Related MBA Events
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School of Mortgage Banking II: November 2024: Online
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School of Mortgage Banking II: December 2024: Austin, TX
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Accounting and Financial Management Conference
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Commercial Real Estate Basics: Introduction to Commercial/Multifamily Real Estate: January 2025: On Demand
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Commercial Real Estate Basics: Borrower Mortgage Credit and Financial Statement Analysis: February 2025
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School of Mortgage Banking II: February 2025: Online
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School of Mortgage Banking III: March 2025: Kansas City, MO
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State and Local Workshop
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National Advocacy Conference
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Mortgage Accounting Webinar Series: Loan Accounting, Part I: Drilling into Mortgage Accounting