Legislative
NAR | CAR | COUNTY - La PLATA | CITY - DURANGO
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Conventional Residential Lending Report
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| NAR Urges Private Mortgage Insurance Companies to Drop Declining Markets Policies |
On May 20, 2008, NAR President Dick Gaylord wrote to Kevin Schneider, President of the Mortgage Insurance Companies of America (MICA). MICA represents the private mortgage insurance industry. Fannie Mae and Freddie Mac
have withdrawn their declining markets policies that reduced the maximum loan amount (and increased the minimum down payment) by five percentage points for properties in declining markets, with some exceptions. NAR's letter asks the private mortgage insurance industry to follow suit.
These companies have their own declining markets policies that limit eligibility of borrowers for mortgage insurance. Although NAR recognizes the need to account for risk, it opposes the declining markets approach that unfairly stigmatizes communities, hurts homeowners, and does not
help home buyers. NAR seeks a meeting with MICA to discuss our concerns in greater detail.
NAR's Letter to MICA >
Contacts: Jeff Lischer, 202-383-1117
Contacts: Marcia Salkin, 202-383-1092
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Federal Tax Report
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| IRS Targets Cell Phone Usage |
Self-employed people inevitably have equipment such as cell phones, computers, cars and other assets that they use daily in their business and, frequently, for personal use as well. A perpetual challenge they face is
differentiating between the business use of these assets and personal use. The Internal Revenue Code identifies cars, computers and other electronic property as "listed property" and requires that self-employed individuals and individuals whose employers provide listed property
assets keep records of their personal and business use of those assets. Expenses incurred for these assets are deductible if they are used for business purposes; expenses related to personal usage are not.
A recent Tax Court case examined the business practices of a self-employed person with respect to cell phones he used and that he provided for an assistant. The Court disallowed his deductions because he could substantiate neither his own nor his associate's business and/or personal
use of cellphones. This holding has caused significant turmoil for employers, their employees and the self-employed.
Congressman Sam Johnson (R-TX) has introduced legislation that would remove cell phones from the category of "listed property" (H.R. 5450) and thereby eliminate potential IRS challenges. The bill has substantial bipartisan support, but was not included in legislation recently
reported from the House Ways and Means Committee. Senators Kerry (D-MA) and Ensign (R-NV) have introduced a similar bill (S. 2668) that is cosponsored by a bipartisan majority of the Senate Finance Committee (and several other Senators, as well). The Finance Committee will likely
craft a tax package before the July 4 break. NAR is participating in a very broad-based coalition to assure that this relief provision is included in whatever bill emerges.
Contacts: Linda Goold, 202-383-1083
Contacts: Jeff Lischer, 202-383-1117
Contacts: Helen Devlin, 202-383-7559 |
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