A New Tax Law that may affect your housing: We said we would post it all

admin   Tue, 21 Nov 2017  MACHEENE | Report Abuse
Congress has just released a serious regulation that could change the game for the housing industry, the impact is meant to be a tax cut for the middle class but could end up having a dire impact on one of the most intrusted vehicles for middle-class folks to gain value and a savings, in the long run, a house.  What is the regulation H.R.1 labeled the "Tax Cut and Jobs Act", in essence, it makes the tax laws less complicated I get where they're going from 

Standard Deduction - $6350K is up to $12K
Personal Deduction - Approx. $4K to 0$ 

Itemized deductions are gone and if you went through that detail 

7 tax bracket down to 4 tax brackets see below: 




What does it take away: 

• Mortgage Interest Deduction Cap $1MillionK to $500K 
  • Expensive homes you will be hurt 625K is your cap with 20% down you will get nothing back from the deduction moving forward. Current owners are grandfathered in so no worries 
• Student Loan Deduction is gone 
• State and Local Income Tax Deduction gone 
• Property Tax write off capped at $10K 

What does it give back
So what does this mean for you, well your on Macheene your buyer or entrepreneur well this move helps small businesses

• Corporate tax rates change 35% down to 20% ... that's a wow. 
• Small Business will begin to immediately write off costs of new equipment rather than depreciating the value of the assets over time. 
• Net Operating Loss forever, yes you read that right ...0 dollars forever - for net operating deductions