How will the new tax bill impact our market? Today, I’ll be pointing out three things you should know.
How is this new tax law going to impact the real estate market?
I’ll be going over a few key points today, but I also definitely recommend that you consult with your tax accountant or your financial planner to see how you will be affected on an individual level. I also recommend that you check out the full details of the law, which I’ve included here.
The first thing I’d like to mention is that the capital gains exclusion has been preserved. This will be greatly beneficial to those who plan on downsizing and want to be able to take advantage of the equity they’ve built over time. If you’ve lived in the home two of the past five years, you can still sell your home and preserve the gains from that sale.
One thing that has changed, though, is that the mortgage interest deduction moved from $1 million to $750,000. This only affects about 1.3% of all people with a mortgage. It might slow home sales in the $950,000 to $1.2 million range, but other aspects of this new tax bill will impact this same range very positively.
Finally, the SALT (state and local taxes) deduction has been maxed out at $10,000. This could possibly mean increased relocation to our area.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.