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 on Tax Increases in FY 2024 Budget Proposal
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MBA Letter to Senate Sponsor on the Prohibiting IRS Financial Surveillance Act
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Joint Letter to Congress on Emergency Rental Assistance
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MBA Letter to IRS on LIBOR Transition
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MBA Letter to FASB on CECL Implementation
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Joint Letter to House Ways and Means Committee on Tax Extenders
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MBA Letter to Financial Services Committee on Current Expected Credit Loss Accounting Standards
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MBA Letter to Congress on H.R. 1957, the Taxpayer First Act of 2019
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MBA Letter on the Invest in America Act (H.R. 2210)
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Joint Letter on the Carried Interest Fairness Act (H.R. 1735)
Related MBA Events
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School of Mortgage Banking II: April 2025: Charlotte, NC
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School of Mortgage Banking II: June 2025: Online
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School of Mortgage Banking III: June 2025: Online
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School of Mortgage Banking II: July 2025: Washington D.C.
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Mortgage Accounting Webinar Series: Hedge Accounting, Part I: Hedging for Accountants
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Commercial Real Estate Basics: Borrower Mortgage Credit and Financial Statement Analysis: September 2025
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School of Mortgage Banking II: September 2025: Dallas, TX
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Mortgage Accounting Webinar Series: Hedge Accounting, Part II: Hedge Accounting and GAAP Reporting