Contributions or gifts to the Local Board, the Ohio Association of REALTORS, and the National Association of REALTORS are not deductible as charitable contributions for federal income tax purposes. However, dues payments may be deductible as ordinary and necessary business expenses subject to restrictions imposed by federal law regarding association lobbying activities. It is estimated that the nondeductible portion of your dues is as follows:
Non-Deductible Percentages: The Tax Reform Act of 1993 made the portion of dues paid to organizations which is spent to lobby the State and Federal governments non-deductible for income tax purposes and requires this to be disclosed to members on their dues invoice or the organization must pay an excise tax.
2017: Expenses for local, state and federal political activity, including voluntary contributions to RPAC, are not deductible for federal income tax purposes. The national RPAC amount indicated is merely a guideline and you may contribute more or less than the suggested amount. 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. 11% or $14 of OAR dues is used by your state PAC to support state and local candidates. 16% or $25 of OAR dues is used by OAR to engage in independent political expenditures for purpose of influencing the election or defeat of local, state or federal candidates, as well as local or state ballot issues. 42% or $50 of NAR dues is sent to national RPAC to support federal candidates and is charged against your limits under 52 USC 30116.
Active Military Duty: The waiver of OAR and NAR dues for REALTORS and their spouses called into active military duty, originally approved for 2002 dues after the 9/11/01 tragedies, has been extended to cover 2017 dues.