Proposed property tax changes probably won’t affect local home prices
Last week, House Republicans released their proposed Tax Cuts and Jobs Act. The bill is intended to cut taxes for the middle-class, simplify the tax code and create jobs. Release of the Senate version is expected this week. Of particular interest to Beach City residents is the impact on local home prices, resulting from potential changes to certain deductions. Like the current tax code, the answer to this is complex and depends on a number of factors. Two proposed modifications that would affect homeowners are the caps on both the mortgage interest and property tax deductions. What is presented here is in no way comprehensive, but rather summarizes how some homeowners might be affected. Currently, homeowners can deduct interest payments on their first $1 million of home loans. The proposed tax plan drops this cap to $500,000 on new home purchases. (Existing homeowners would not be affected.) This change translates to about $20,000 in interest that will not be deductible. Additionally, the plan calls for a $10,000 limit on the amount of property tax that can be deducted, which would impact homes valued at over $800,000. The impact on homeowners will depend on the amount of their…
Read this story on easyreadernews.com