This site is about the overreaching political power of the NC Association of Realtors flush with money from cashing in your equity 6% at a time, leaving you to pay for growth with property taxes, year after year, with or without cash flow. In the last few years NCAR has pumped millions of dollars into NC political campaigns at the state and local level. They have spent millions more to defeat Local Options for Local Governments with misleading ads.

Wednesday, July 23, 2008


The NC Association of Realtors may be in violation of IRS rules by failing to notify members that the amounts of annual dues and mandatory assessment going towards the Issues Mobilization Fund, lobbying and other political activities are NOT tax deductible. An email to Raleigh area NCAR members actually claims the opposite:

This assessment has been reduced to $50.00 if paid by September 30th and is $70.00 after that date but is due no later the due date of our regular local and state Board dues by the end of 2008. If we do not pay the assessment, we will be subject to losing our membership in NCAR and NAR and therefore our local Board and TMLS. This assessment is tax deductible as a business expense as it is not an RPAC contribution but a dues assessment. Our 2009 dues will also increase by $25.00 for our January billing.
[Emphasis added.]

NCAR is a 501(c)(6) organization. From the IRS:
Political Campaign and Lobbying Activities of IRC 501(c)(4), (c)(5), and (c)(6) Organizations
Page 6 of the PDF (or L-4 in the document) is pretty clear about non-deductibility.
Dues or contributions to IRC 501(c)(4), (c)(5), and (c)(6) organizations may be deductible as business expenses under IRC 162.
Political campaign activity:
• Amounts paid for intervention or participation in any political campaign may not be deducted as a business expense. IRC 162(e)(2)(A).
• Amounts paid for direct legislative lobbying expenses at the federal and state (but not the local) level may not be deducted as a business expense.
• Grass roots lobbying expenditures also are not deductible.
• Amounts paid for contact with certain federal officials would not be deductible under IRC 162(e).

Amounts paid to an IRC 501(c) organization that are specifically for political campaign activities or lobbying, would not be deductible under IRC 162.

If a substantial part of the activities of the IRC 501(c) organization consists of political campaign activities or lobbying, a deduction under IRC 162 is allowed only for the portion of dues or other payments to the organization that the taxpayer can clearly establish was not for political campaign or lobbying activities. Reg. 1.162-20(c)(3).

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