The National Association of Realtors (NAR) is opposed to the current 2017 Tax Reform Bill that is currently on the table in Congress. The bill, as per NAR, is a direct threat to the public that own property. Not only will millions of homeowners not benefit from the current proposal, many of the homeowners will actually get a tax increase. In addition, if the housing market should lose more than a 10% drop in home values due to the passage of the Tax Reform Act homeowners would stand to lose substantial equity likely a secondary result if the bill should be enacted. It is projected that millions of Middle Class homeowners would actually see a tax hike under this plan, while Corporations would benefit greatly from the huge tax cuts.
The Bill in its present form would:
Cap The Mortgage Interest Deduction At $500,000.0k For New Mortgages
The Cap applies to new mortgage debt (refinancing is exempt) incurred after November 2, 2017. The “limit” is not indexed to inflation causing the deduction value to further diminish over time.
Increases The Standard Deduction
Puts Homeownership Tax Incentives outside the reach of more than 90% of American families
Limits The Exemption On Capital Gains Tax From The Sale Of The Primary Residence
-The new rules would require the homeowner to live in the primary residence for 5 of the 8 years before a sale could qualify for the exemption/versus the current exemption requirement of living in the home for 2 of the previous 5 years.
-The new rule phases out the exemption for single filers with incomes over $250,000.0k and for married/joint filers with incomes over $500,000.0k.
Eliminates The Deduction For State And Local Income And Sales Tax
Home-Owners in all 50 States would be double taxed on the money they pay for State and Local Taxes.
Eliminates The Mortgage Interest Deduction For Second/Vacation Homes
Eliminates The “Moving Expense” Deduction
Eliminates The Deduction For Interest Paid On Student Loans
Eliminates The Medical Expenses Deduction-Even For The Elderly
Eliminates Personal Casualty Deductions-Such As From Hurricanes Or Wildfires
In addition to the economic impact of all the above this bill will conservatively add $1.5 trillion dollars to the Federal deficit which will certainly impact our Children and Grandchildren.
***If you would like to share your opinion please follow the link below which will automatically post your opposition directly to your Congressman by simply posting your address and phone number. https://tinyurl.com/ybzsn2ot
Article Summarized From National Association Of Realtors (11/6/2017)