Last Christmas, I went to Charlotte for some holiday cheer and to see some friends who had relocated to the Queen City. 2017 had been a great year for real estate and with all the articles in Forbes
How Does The Tax Bill Impact Buyers And Sellers
How Does the Tax Bill Impact Buyers and Sellers?
There were several provisions in the new tax bill that will have a direct impact on residential real estate. Over the last few weeks, there were many speculations on where many proposed changes would land.
Change in Standard Deduction: the standard deduction will increase to $12,000 for single filers and $24,000 for joint filers. Many homeowners will no longer need to itemized deductions.
Mortgage Interest Deductions: the new cap is set at $750,000 for loans after Dec 14 but will remain at $1Million for loans prior. This limit will also include second homes.
Capital Gains Exclusion: If you have lived in a residence for two of past five years, you can exclude $500,000 for joint filers and $250,000 for single filers. Earlier proposals would have required longer residency requirements.
State and Local Property Taxes: Limits for deduction are now capped at $10,000.
Moving Expenses: Only deductible for military moves, eliminated otherwise for job relocations.
Casualty Loss Deduction: Must be from a result of Nationally Declared Disaster, individual instances no longer deductible.
Estate Tax: The new law doubles the estate tax exemption to $11.2 Million.
Low Income Housing Tax Credit: Remains at 4%. Funds about 30% of all affordable housing construction.
Historic Tax Credit: In place since 1981, provide a 20% credit when a certified historic property is placed into service is now spread over multiple years.
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