Dues Information
Nondeductible NYSAR and NAR Dues Information
Nondeductibility
Compliance with the Tax Reform Act of 1993, as amended by the Tax Cuts and Jobs Act of 2017, requires that the portion of dues attributable to lobbying and political activities at the Local, State and Federal levels of government be considered nondeductible for income tax purposes.
For 2023 dues of $150 per member, NAR computes 34 percent or $51 to be nondeductible for the member’s income tax due to NAR lobbying efforts. Note that the entire $45 consumer advertising campaign special assessment qualifies as fully deductible. In addition, contributions (including member dues) to NAR are not tax deductible as charitable contributions. However, they may be tax deductible under other provisions of the Internal Revenue Code.
For 2023 dues of $120 per member, the NYSAR portion that is not deductible for income tax purpose is $25.
Nondeductibility Notice RPAC
Contributions to RPAC are not deductible for federal income tax purposes. Contributions are voluntary and are used for political purposes. The amounts indicated are merely guidelines and you may contribute more or less than the suggested amounts. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or a decision not to contribute. You may refuse to contribute without reprisal. Your contribution is split between National RPAC and the State RPAC. The National RPAC portion is used to support federal candidates and is charged against your limits under 52 U.S.C. 30116.
*Primary members: Your 2023 primary dues bill includes a $45 mandatory assessment by the National Association of REALTORS® (NAR) of all REALTOR® and REALTOR®-Associate members to fund a nationwide public awareness campaign that includes TV network and cable ads highlighting the value a REALTOR® brings to a transaction and stressing the importance of using a REALTOR®.
Dues Invoices
If you include an RPAC solicitation with your dues statement the following specific language must be included on your 2023 dues billing statement for the nondeductible portion of dues and RPAC contribution requests:
Contributions are not deductible for income tax purposes. Contributions to RPAC are voluntary and are used for political purposes. You may contribute more or less than the suggested amount. You may refuse to contribute without reprisal and the National Association of REALTORS®, the New York State Association of REALTORS® or any of its local boards or associations 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 NYSAR PAC reaches its PAC goal 30% is sent to National RPAC to support federal candidates and is charged against your limits under 2 U.S.C. 441a; after NYSAR PAC reaches its RPAC goal it may elect to retain your entire contribution for use in supporting state and local candidates.
Note
Payments to the association/board of REALTORS® are not deductible as charitable contributions. Such payments may, however, be deductible as ordinary and necessary business expenses.
Important RPAC Contribution Compliance Information
The FECA requires that if the amount of the contribution is in excess of $50, it must be forwarded to the state association office within 10 days of the date of the check. If the contribution is $50 or less, it must be forwarded within 30 days. To simplify the forwarding procedure, it is highly recommended that all RPAC donations be forwarded at least once a week to the New York State Association.