Tax reform is always a topic of conversation on a national and state level. Exactly how potential new tax reforms could affect real estate is something hat every seller and buyer needs to understand so they can best be prepared financially for whatever lies ahead. As we move into 2015, tax reform will impact how we do business and how we buy, or sell, real estate. that would affect real estate has been the talk of the industry recently, and we can expect the conversation to gain steam as we move toward 2015. Like it or not, these discussions are going to impact how we do business.
The main area of concern is the fate of the mortgage-interest deduction. Property-tax deduction and capital-gains taxes on property sales are also relevant to the discussion. Despite some changes in these policies, it is possible that the majority of homeowners and property investors won’t feel a significant impact. The main discussion in government is currently about reducing the mortgage-interest deduction for the wealthy. For others, the current deduction will likely remain in place. The mortgage interest tax deduction allows homeowners to deduct their mortgage interest on their tax returns.
Despite any changes, homeownership will still be preferable to renting and will still be a good investment. Building equity, having stability, and a stake in your community are always part of the American Dmortgage-interest deduction