3 Ways the Tax Reform Law Impacts Real Estate

How will the new tax reform bill impact the Phoenix real estate market? I’ll go over three key points for you today.

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When it comes to real estate, there are three key changes that came with the new tax bill that you need to understand.

  1. Property taxes: Itemized deductions, including property taxes, are now capped at $10,000.
  2. Mortgage interest deduction: You can only deduct interest on a loan up to $750,000.
  3. Moving expenses: These are no longer deductible unless you are a member of the U.S. Armed Forces.

What do these changes mean for you?

For one thing, it is now more expensive as a homeowner because you lose those tax deductions. If you are a home seller, it makes it more expensive to move and to sell your home.

I don’t believe we will reach 7% appreciation in 2018.

In the last two years, home prices in Phoenix overall have been appreciating about 7% each year. With the new tax bill, I don’t believe we will reach that same appreciation rate this year.

If your resolution is to sell your home in 2018, or if you have any other questions, just give me a call or send me an email. I would be happy to help you.

Stay tuned to see how Cap Core Real Estate will expand our services in 2018. Have a great day!

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