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Congressional Tax Cut And Job Act Proposal
I believe everyone is very aware of the proposed congressional tax reform. California will feel an impact as many of changes will certainly impact current homeowners as well as potential home owners.
Listed below are a few of the provisions in the Tax Cut and Job Act that will impact real estate:
Lowers the mortgage interest deduction cap from $1 million to $500,000 (will have significant impact as many California home owners carry high balance mortgages)
Eliminates the mortgage interest deduction on second homes (Tahoe, Hawaii and many other 2nd home markets will be impacted)
Homeowners would no longer be able to deduct the interest on home equity loans
Eliminates state and local income tax deductions
Caps property tax deductions at $10,000
Extends the qualification period for exclusion of capital gains tax on the sale of a primary home from two out of the last five years to five out of the last eight years
Message below from National Association of Realtors:
As you can imagine, these changes would remove the incentive for homeownership and unfairly hurt California homebuyers. California’s homeownership rate is already among the lowest in the nation, and we can’t afford for it to go lower.
Capping the mortgage interest deduction essentially nullifies the incentive for homeownership, thereby removing the incentive for people to buy homes. We all know that homeownership has and continues to be the best way for families to build wealth and move up the socioeconomic ladder.
Congress has incentivized homeownership through the tax code for more than 100 years, and they should not change things now.
That’s why I’m asking you to get involved in C.A.R.’s and NAR’s Call for Action. Tell Congress to oppose this and any tax reform proposal that dramatically weakens the incentive for homeownership.
Share this Call to Action and use these hashtags on your social media accounts #SaveHomeOwnership and #TaxReform
You can also take action directly at: http://www.car.org/difference/getinvolved/cfataxreformrealtors