Tax Reform Update: Mortgage Interest and Property Tax Deductions

Will you pay more in Federal taxes because of vanishing mortgage interest and property tax deductions?

Are your mortgage interest and property tax deductions in the 2017 tax reform plan at risk?  According to the National Association of Realtors, they probably are: the “Senate-Passed Tax Legislation Bad News for Homeowners”. Below is an excerpt from NAR:

Posted by the NATIONAL ASSOCIATION of REALTORS(R) Dec 2, 2017
Early Saturday morning, the U.S. Senate, by a vote of 51-49, passed legislation that would change the face of homeownership in this country for decades to come. The House passed its own version of tax reform Nov. 16.

A last-minute change to the Senate version would make up to $10,000 in property taxes deductible for the small number of homeowners who would still be itemizing. Previously, the Senate version had eliminated the property tax deduction entirely. The change aligns with the property tax cap set in the House bill. One difference between the two bills is that the Senate version retains the deductibility of mortgage interest payments on up to $1 million of indebtedness; the House version caps indebtedness at $500,000 (again, for the small minority still itemizing).

Now, members of the Senate and the House must meet to agree on a final bill. It’s not too late to make your voice heard. Join us in telling your members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected. On Monday, Dec. 4, NAR will issue a new Call for Action. If you haven’t already signed up to receive CFAs on your phone, please text ACTION to 30644!

You can visit the NAR website to read updates on the 2017 tax reform plan by clicking here.

While Jim Bobo Real Estate can’t offer you tax advice, we can offer sound advice from over 20 years of experience helping people buy and sell throughout the Metro Charleston area.  Please click here to contact us!

Jim Bobo, Jr., BIC, Owner
Jim Bobo Real Estate LLC
10605 Hwy 78 East
Summerville, SC 29483
Call or text (843) 442-7275
Licensed in South Carolina
In addition to over 20 years of real estate industry working experience,
Jim holds the following designations:
CIPS (Certified International Property Specialist)
CNE (Certified Negotiation Expert)
ABR (Accredited Buyer Representative)
RSPS (Resort and Second Home Property Specialist)