Republican lawmakers just released the Trump tax plan, cutting corporate and middle-class taxes.
It has the potential to impact:
• Individual tax rates
• Changes for the middle class
• Increasing the standard deduction and the child tax credit
• Potential changes in the mortgage interest deduction
• The medical expense deduction
• Estate tax changes
• And more…
The Highlights of the Trump Tax Plan:
• $90,000 income pays 12% tax
• $259,999 income and below would pay a 25% tax
• Standard Deduction doubles to $12,700 for single filers and $24,000 for married couples
• Newly purchased mortgage interest deduction cap at $500,000
• $10,000 limit on property tax
• Retains the low income housing credit
• Repeals the AMT (Alternative Minimum Tax)
Here is a great article in The New York Times that highlights the proposed Trump Tax Plan changes.
This impacts real estate in a big way. First, the obvious, mortgage interest deduction reduction from $1 million to only $500,000 and the House bill restores an itemized property tax deduction for property taxes up to $10,000.
But additionally, the not so obvious, doubling the standard deduction for married couples to $24,000 would make the mortgage deduction useless for most homeowners.
A married couple would need a home-loan balance of about $608,000 before it would make sense to itemize and use the mortgage-interest deduction.
Any questions how the TRUMP TAX PLAN could affect you please do not hesitate to contact us. We can help navigate the ins and outs and make you money for years to come. 800-282-2004