What does the New Tax Law Mean for Home Buyers & Owners?
The purpose of the new tax las is to put more money in the hands of the consumers by lowering the tax rate and increasing standard deductions. The higher standard deductions and changes in itemized deductions will mean fewer individuals will itemize their tax return. Three major changes in the tax code are:-
- The maximum mortgage amount for which interest can be written off has been lowered from one million dollars to $750,000, though this provision does not apply to existing financing in place.
- Deductions for property tax, state and local income tax are capped at $10,000 starting in 2018.
- Home equity loan interest is no longer deductible.
There is a silver lining to all this, the goal of putting more money in the consumers pocket can have a positive effect on the economy, which in turn can create jobs and an increase demand for housing.
The good news is that there are still strong economic reasons to own a home instead of renting:-
- The home will serve as a leverage investment
- Paying your mortgage each month is a forced savings plan
- Home ownership is a protection against inflation
- The new tax law did not change the benefit of owning and then selling a home as compared to other investments, as the capital gains exclusion for primary residences was not touched.
*Note that the tax law is very new, and the IRS is still trying to figure out all the regulations and instructions to implement the law. Each individual situation is unique, and you should consult your accountant for further advice and updates.
For more information on Home Trends in Fairfield County, Connecticut contact DMK Real Estate.
DMK providing step by step real estate assistance for buyers, sellers, builders, landlords and tenants.
Sellers ~ let DMK walk you through the process of selling your home. As a Sellers Representative Specialist (SRS) DMK has gone the extra step with additional training from the National Association of Realtors® (NAR). As a Realtor® it is important to understand both sides of the transaction to provide the best service and advice to our clients.
Buyers ~ DMK will assist buyers step by step in the process of buying a home. Currently an applicant for the Accredited Buyers Representative (ABR) designation by the National Association of Realtors (NAR) that involves additional education and training to Realtors® who specialize in working with buyers
Builders ~ with over twenty-five years hands on experience and knowledge in residential construction, home improvements and remodeling we can effectively assist builders sell their project in a timely and profitable manner. DMK specializes in energy efficient and green homes and is a designated GREEN Realtor by NAR and an accredited LEED AP Homes by USGBC.
Landlords & Tenants ~ with over twenty years of experience in investment properties and property management DMK understand how important a good relationship is along with finding the right fit makes all the difference. Investors looking for a rental property contact DMK Real Estate for experience, knowledge and property management advice.
Connecticut Licensed Real Estate Broker
Seller Representative Specialist
Accredited Buyer Representative candidate
LEED AP Homes
DMK Real Estate, Darien, CT.
Cell (203) 228-0646
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