Impact of Tax Reform Options on Home Ownership

Impact of Tax Reform Options on Home Ownership
The National Association of REALTORS® (NAR) engaged consulting firm PricewaterhouseCoopers to review the impacts of an illustrative comprehensive tax reform option that would: lower and consolidate marginal tax rates to three rates with a top rate of 33 percent; double the standard deduction; eliminate all itemized deductions other than charitable contributions and mortgage interest; eliminate the Alternative Minimum Tax; and cap the tax rate on pass-through business income at 25 percent. Here are the highlights of the report:

  • Homeowners with an adjusted gross income (AGI) between $50,000 and $200,000 would see an average annual tax increase of $815. Non-homeowners with AGI in the same range would see an average annual tax reduction of $516.
  • Home prices nationwide in the short run would fall by 10.2 percent as a result of the comprehensive tax reform option.
  • The combined tax savings for those who claim the mortgage interest deduction (MID) and real estate tax deduction would fall from over $1.3 trillion for fiscal years 2018-2027 under the current law to just $232 billion under the comprehensive tax reform option, a drop of 82 percent.

Download the full report here.
Source: Nar.realtor; 5/16/2017

Courtesy of:

Steve Sisman
CSP, e-Pro, REALTOR,

Designated Short Sale and Foreclosure Resource,

Certified Short Sale Master Default Intermediary,

Certified Real Estate Divorce Specialist,

Associate Leadership Counsel Alumnus,

a member of the Delaware County Chamber of Commerce,

a member of the Delaware Small Business Chamber,

 
VP of the “Little Shul” (CYSEI)

PA Lic# RS218928L DE Lic# RS-0016238

Weichert

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606 E. Baltimore Pike, Media, PA 19063 * 610.565.4599 fax (PA)
4760 Limestone Road, Wilmington, DE 19808 * 302.992.9815 fax (DE)
steve@stevesisman.com * www.SteveSisman.com
A caring professional…
Oh and by the way, I’m never too busy for your referrals!
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