GRI 201 - Taxes and Real Estate

The purpose of this course is not to enable the real estate licensee to give tax advice to his/her customers. The purpose is to make licensees aware of parts of the tax code that affect real estate as it relates to customers. The Tax Cuts and Jobs Act of 2017 made many changes to the tax code. Some of these are permanent and some are set to expire in 2025. Since there is no way of knowing what Congress might do before 2025 (and its many years away), for the purposes of this course, we shall consider all changes as permanent.

In 2020 Congress again made numerous changes to the tax code, some of which affect real estate. It’s getting hard for even the professionals to keep up with it all.

Not being aware of some of the tax laws affecting real estate transactions can create liability. While licensees should never give tax advice, ignorance is not always bliss. Acquiring an understanding of these laws can create a point of difference in the service provided to customers.

Keep in mind that most tax rules have exceptions. This course is not intended for the level of discussion that includes all exceptions to the rules. Therefore, most of the exceptions are not discussed. Information presented is intended to provide an awareness of the many areas of the tax law where ownership of a personal residence may provide tax benefits to the owner. Applicability of any of these tax laws to a specific taxpayer is dependent upon many personal factors. Because of this, it is important that licensees not attempt to become tax advisors and that they encourage their customers to seek professional tax advice from competent tax practitioners.