The Tax Reform that passed in 2018
How is it affect you in 2018?
THE MODERN AGENT SAYS
“Although the tax reform bill has not been finalized, it adds an amount of uncertainty to you important decisions. As Julian Berkeley points out, uncertainty also creates opportunities. You may want to take advantage of this time and make or accept offers you normally may not consider.”
Northern Trust, a third party, has provided a simplified PDF that highlights where the current law sits in the legislative process, along with several proposed changes that are relevant to real estate buyers, sellers and owners. Areas of impact include:
State and local property tax deductions:
The proposal eliminates or reduces the allowable write-off, thereby increasing federal tax payment.
Mortgage interest tax deduction:
The proposal will reduce the amount of allowable deduction, thereby increase tax payment. It may also limit mortgage interest deduction to only one primary home, thereby affecting vacation homes and home equity lines.
Capital gains tax changes:
This proposal adds conditions which will make it more difficult to avoid paying capital gains taxes, thereby resulting in more homeowners having to pay capital gains tax later when they decide to sell.
For further information, we strongly recommend consulting with a financial advisor to obtain financial guidance regarding things such as home and any other property(s) purchases or sales.