Finalized Tax Cuts and Jobs Act Bill - Details Affecting Real Estate
By Emilio DiSpirito Radio Show Host www.TheRoundTableRadio.com
|Realtor Emilio DiSpirito in the iHeartradio studios|
The highly anticipated bill dubbed "Tax Cuts and Jobs Act", pushed by the Republicans, has been finalized on Friday, December 15th 2017 and will go to both Houses of Congress Tuesday, December 19th for full approval. Once thereafter it will cross President Trump's desk for his blessing.There is a lot of concern that certain details like deductions for mortgage interest and property tax would disrupt the real estate market. As a Realtor and member of agents selling in the top 1% of the country, I strongly disagree. Let me explain.
- This bill serves to help the middle class (about time!) with lower tax brackets and double the standard deduction! Federal tax deductions from $6350 to $12,700 filing single and from $12,000 to $24,000 when filing married!
- Think about folks retiring or in retirement! They need deductions more than anyone!
- "Main Street" business, aka small business owners will find that their tax rate will be reduced up to 29.6%!
- When local business owners pay fewer taxes, they invest in their business and create jobs.
- Corporations in America will be paying -14% less in 2018 than they do today! Currently, at 35%, America is the highest taxed country in the industrial world when talking corporations!
- When companies earn more, they hire and spend more. This stimulates all income classes through job growth.
- When there are jobs, there is additional income to be spent, money to be lent and the economic wheel is turning.
- Currently, homeowners can deduct up to $1.1 million of their first and second homes in interest deductions.
- Under the new bill, two things happen.
- All current mortgages are grandfathered in and nothing changes.
- All new home purchases on 1st and 2nd homes will receive interest deductions on the first $750,000.
- Right now you can write off all of your property taxes on your first home, land and vacation homes.
- The bill will allow for a deduction of up to $10,000 total on property taxes.
- Now allowing taxpayers to write off Sales Tax, Income Tax or Property Tax. This allows taxpayers in all circumstances, property owners or not to benefit!
- Imagine car sales, luxury goods sold, etc! They will all increase!!
Other Important Factors That Will Increase Spending:
- No more Obamacare penalties!
- Relief for medical bills!
- Expanding ability for citizens to contribute more to non-profits!
- Allowing extra support for Grad students!
- Significantly improves America's position on energy production
- Hurricane Relief
Stay tuned for additional information as it comes in! www.TheRoundTableRadio.com
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