When President Trump announced his tax plan, I was eager to dig into the numbers to see how his proposal would impact homeownership, especially because NAR came out against it. How useful is the mortgage interest deduction to homeowners, and if taxpayers are bringing home more money, can that really be a bad thing? The key provisions in Trump’s proposed tax plan that apply to real estate include: Reducing the number of tax brackets from seven to four, eliminating income tax for the 73 million households who make less than $50,000 per year. Raising the standard deduction to $12,700 for unmarried individuals and $25,400 for those who are married. Maintaining the deduction for mortgages and charitable contributions. Eliminating deductions for state income taxes. NAR: “A non-starter for homeowners” NAR President William E. Brown recently voiced his opposition to President Trump’s proposed tax reform plan. "Doubling the standard deduction and repealing the...
- Married taxpayers who make $75,000 or less a year and purchase property worth at or under $400,000 will pay less in taxes under the proposed Trump plan if they take the standard deduction.
- Under the Trump plan, married filers who make $50,000 or less will pay zero federal income tax.
Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York