Realtors and their guests broke the attendance record at the 2005 Realtors Midyear Legislative Meetings & Trade Expo, held May 9-14, in Washington D.C. More than 9,000 members of the National Association Realtors descended on Capitol Hill to visit legislators and attend conference sessions and meetings. The old attendance record of 8,300 was set last year.

The number of exhibitors at the Trade Expo, at 210, also hit a record, includes 80 companies making their first appearance at the annual legislative conference.

Representing SIBOR was President Sari Kingsley, Vice President Frank Reali, Director Christopher Stivanello and CEO Sandy Krueger.

One of the most talked about issues of this year (or maybe every year) was tax deductions. Although President Bush has said that tax deductions for homeownership and charitable contributions will not be altered in tax reform, the Bush Tax Reform Advisory Commission has thus far given no indication of what tax changes it will propose in its report, which is due by July 31.

For this reason, it’s a practical assumption that even real-estate friendly provisions such as exemptions on gains for the sale of homes, deductions of home-equity loan interest, historic preservation credits, and in a worst-case scenario, the mortgage-interest deduction, could be at risk for elimination.

Perhaps one of the most vulnerable real estate provisions this year is the deduction for home-equity loans of up to $100,000, in part because of the attention it has garnered in Washington. In a rare move, Federal Reserve Chairman Alan Greenspan has asked his staff to study the impact of home-equity loans on the economy. Since proceeds from these loans have been a big factor in financing consumer spending, eliminating the deduction might have significant economic impact.

But the widespread use of home-equity loans also is creating a climate in which many homeowners have increased their risk of default through over-leveraging, especially if appreciation slows. For the present, the Federal Taxation Committee agreed to not take a position on home-equity deductions until proposed changes are more concrete.

The committee endorsed a proposal from New York Senator Hilary Clinton that would provide incentives to encourage employers to assist their employees in buying a home. The issue is of particular concern in areas with high home prices and in resorts. Currently, employers can offer grants to employees to use as home down payments, but the funds are taxable for employees. Under the new proposal, employees would not be taxed on these grants.