2017 Tax Package Details for the Homeowner and Homebuyer:
After months of negotiations, it appears that the new Republican Tax package is due to be approved by both the Senate and House of Representatives – pending final signage from President Trump.
Within the Tax Package are numerous changes that relate to the homeowner or potential homeowner.
Hence, here are the details, the nitty gritty, the scoop, the bottom line of the proposed tax changes as it relates to the homeowner:
1. The Okay: Taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales tax. Instead, the legislation allows individuals to deduct up to $10,000 in state and local income and property taxes or state and local property and sales tax.
2. The Good: Congress will keep the pivotal Mortgage Interest Deduction for existing homeowners of up to 1 Million. However, for new homeowners, taxpayers can deduct interest on up to $750,000 in mortgage debt, down from $1 million currently.
3. The Super Fantastic: Congress has kept in place the current $500,000 (or $250,000 for single filers) capital gains exclusion for homeowners that sell their primary home as long as they’ve lived there for two of the past five years. Earlier tax reform proposals would have increased the live-in requirement to five out of the last eight years.
4. My Two cent’s worth: The pending tax package was much better than anticipated. My concern was the change to the capital gains exclusion and elimination of interest deduction. However, the capital gains exclusion is left in place and the mortgage interest deduction was lowered to $750,000.
5. What Next: As of this writing December 19, 2017, the tax package was pending approval from both houses and signage by the President. However, unless something “odd” happens it looks like a done deal.
6. About the Author: Dave Crowell is a top producing Realtor in Camarillo, CA and an expert in Real Estate Investing and how to maximize your property for profit and tax implications. To Buy or Sale a home, condo, townhome, and/or Investment Property contact Dave Crowell, American Dream Realty – BRE 01845970, 805-300-3345 or visit my website at www.mycamarilloproperties.com.
Dave Crowell
American Dream Realty
Bre: 01845970
Email: crowelldg@gmail.com
Phone: 805-300-3345
