Final 2017 Tax Law Agreement

As we’ve all waited several weeks to hear of the final version of the massive tax law changes, Congress has finally come to an agreement.

As it relates to the real estate industry, the biggest impact is that the mortgage interest tax deduction will exist up to $750,000 of the mortgage. This is better than the proposed limit in the original House version. With regards to Property Tax and even State Income Taxes, Congress is looking at allowing a deduction for up to the first $10,000. The minimum residency period is also still planning to be raised to be 5 of the past 8 years. These are the anticipated tax law changes as they relate to the real estate industry right now.

Please sign up to keep in touch with me for more details on the tax law as things become clearer. I’m Karen, your Mortgage Genie, helping you find the home of your dreams.

How Does the New Tax Law Impact Home Buying?

While each chamber of Congress recently approved a version of new tax regulations, the direction is clear. We are in for a whole new era of taxes. While I would strongly recommend consulting a tax consultant, I do want to give you an idea of how I understand this will impact the home buying market. The big difference between the versions is the amount of mortgage interest deduction that will be allowed. On new mortgages, the House version caps it at the interest on the first $100,000. The Senate version caps it at $1,000,000. In addition, there is the possibility that the property tax will no longer be a valid itemized deduction. I anticipate for things to become clearer prior to Christmas but whatever happens, these changes will likely impact the real estate market.

I’m Karen, your Mortgage Genie, helping you find the home of your dreams.