You’ve heard the news about Tax Reform, and unfortunately it’s not good news. The bill unveiled in the House last week is a direct threat to consumers, to homeowners, and to your business.
Not only will millions of homeowners not benefit from the proposal, many will get a tax increase. Additionally, homeowners could lose substantial equity from the more than 10% drop in home values likely to result if the bill is enacted.
What the legislation would do:
- Lowers the cap for the mortgage interest deduction (MID) at $500,000 for new mortgages
- Increases the standard deduction, which would put homeownership tax incentives out of reach for more than 90% of American families
- Eliminates the deduction for state and local taxes
- Eliminates the deduction for moving expenses
- Eliminates the deduction on interest on student loans
All this from a bill that is supposed to improve the current system. Not only is this legislation a clear and present danger to American homeownership, it will cost our children and grandchildren $1.5 trillion in new federal debt.
What can you do about it?
Tell your representative that it’s time to reform our tax code AND protect middle class homeowners.
You’ve taken action, what now?
As NAR continues to take on congress to protect the value of homeownership, make sure you’re on the team by making an investment in TREPAC.
TREPAC investors are helping ensure tax reform doesn’t result in stripping the mortgage interest deduction- our greatest financial incentive for homeownership. Take your commitment to your business and your clients to the next level by investing in TREPAC.