What The Republican Tax Bill Means For The Value Of Your Home
House Republicans released their long awaited tax bill Thursday. The proposal is a long way from becoming the law of the land, but the draft contains some red flags for the people who build, sell and own homes—as well as for people who want to buy them.
Three changes are particularly relevant: a reduction in the amount of mortgage interest that can be deducted, a new cap on property tax deductions and limits to the capital gains exemption used by homeowners when they sell.
Real estate professionals have been quick to cry foul, arguing the proposals would eliminate the tax incentive to buy, turning America into a nation of renters and putting pressure on home values. Already the homeownership rate is near an all-time low at 63.7%, they point out. William Brown, president of the National Association of Realtors, calls the bill “nowhere near as good a deal as the one middle-class homeowners get under current law.” Some outside the industry, however, contend that in the long run the only real loser will be the industry itself.
So what’s changing?
Find out more by reading the article by Forbes