Middle Class Tax Increase Passed; What does this mean for homeowners?

On November 16, 2017, the House of Representatives approved a new tax bill for the first time in 31 years. The $1.4 trillion overhaul will reduce individual tax brackets from seven to four an eliminates certain deductions and tax credits. The National Association of Realtors spoke out against the bill after its passing, calling it an “all-out assault on homeownership.”

The President of the National Association of Realtors, Elizabeth Mendenhall, fears that the homeowners in the middle class will face a decrease in home values. One such accusation even states that the new bill will encourage people to rent homes because the tax incentive will no longer be there to purchase or own a home. In an effort to push back against the bill and save some of the tax incentives for homeowners, the National Association of Realtors plans to encourage the Senate to try and keep some of the tax benefits for homeowners in their own tax plan.

It will be interesting to see what impacts the new tax bill has on homeowners and whether people continue to purchase homes in the United States or opt to continue renting instead. If you need an experienced real estate attorney, contact our firm today.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your estate or real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.