There are as many articles about the Tax Reform online than there are new iPhones coming out….let’s try to consolidate the noise down to a couple key factors.
Middle-Class Homeowners – the most vocal – NAR. NAR fights to keep the minimum tax-deductible loan amount as high as they can, naturally, to keep the #1 demand to become a homeowner in play.
NAR is concerned that home values will drop drastically due to a cut from the current $1.1 million (amongst two mortgages – a 1st and 2nd) to $500,000 as originally projected by the new reform.
Many say we need the deduction while other say, without the deduction income taxes, will be lowered and therefore people will have more money between Jan – Dec to afford more home. Is this a borrow from Peter to pay Paul concept, or is there more to it?
Simply put, or not so simple, do we wait the full year to get the tax deduction from our interest paid on a mortgage or do we set aside that tax benefit and just tax less day to day so people have more money to spend right away?
Leave a comment, I want to know your thoughts?