GAR DUES BILLING/ESTIMATED LOBBYING EXPENSE DEDUCTION ALLOWANCE:
The portion of dues paid that is spent to lobby the State and Federal governments is not deductible for income tax purposes and the IRS requires that all dues statements disclose this information. GAR has estimated that $13.82 (14.10%) is the nondeductible portion of 2017 GAR dues. The disclosure must include the words “NOT DEDUCTIBLE FOR INCOME TAX” and must be on the invoice in the same size type as other information. Omitting this required disclosure could result in liability for a proxy tax.
Contributions to RPAC are voluntary and are used for political purposes. You may refuse to contribute without reprisal and the National Association of REALTORS® or any of its state associations or local boards will not favor or disfavor any member because of the amount contributed. 70% of each contribution is used by your state PAC to support state and local political candidates. Until your state PAC reaches its RPAC goal 30% is sent to National RPAC to support federal candidates and is charged against your limits under 2 U.S.C. 441a; after the state PAC reaches its RPAC goal it may elect to retain your entire contribution for use in supporting state and local candidates.
2018 & 2019 NAR Dues Deductibility: See link below.
Please note that the entire $35 Public Awareness Campaign special assessment qualifies as fully deductible.