Real Estate News

Senate-Passed Tax Legislation Bad News for Homeowners

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).

Tax incentives to own a home are fundamental to the overall value of homes in every state and territory across the country. When those incentives are nullified in the way this bill provides, estimates provided by the National Association of Realtors show that home values stand to fall by an average of more than 10 percent, and even greater in high-cost areas.

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. Tell your members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected. Important improvements in the legislation are possible by encouraging Congress to maintain the current law for the mortgage interest deduction and capital gains exclusion. Retaining current law makes the bill more favorable to homeownership.

1.) Find your Representative here

2.) Copy this text: in Subject: "Maintain the current law for the mortgage interest deduction and capital gains exclusion"

3.) In the message body copy and paste: "Incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected. Important improvements in the legislation are possible but we trust you will maintain the current law for the mortgage interest deduction and capital gains exclusion."

Make your voice count, act now!

How much is your home worth? Whether you are planning to sell, refinance, take some equity, make home improvements, move..etc.. knowing the value of your home under the current market can empower you to make better financial decisions, it very easy: find out here

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How much is your home worth?

Whether you are planning to sell, refinance, take some equity, make home improvements, move..etc.. knowing the value of your home under the current market can empower you to make better financial decisions, it very easy: find out here