Early Saturday morning, the U.S. Senate, by a vote of 51-49, passed legislation that would change the face of homeownership in this country for decades to come. The House passed its own version of tax reform Nov. 16.
A last-minute change to the Senate version would make up to $10,000 in property taxes deductible for the small number of homeowners who would still be itemizing. Previously, the Senate version had eliminated the property tax deduction entirely. The change aligns with the property tax cap set in the House bill.
One difference between the two bills is that the Senate version retains the deductibility of mortgage interest payments on up to $1 million of indebtedness; the House version caps indebtedness at $500,000 (again, for the small minority still itemizing).
Now, members of the Senate and the House must meet to agree on a final bill. It’s not too late to make your voice heard. Join NAR in telling your members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected. Later today, Dec. 4, NAR will issue a new Call for Action. If you haven’t already signed up to receive CFAs on your phone, please text ACTION to 30644.
Visitnar.realtor for the latest developments on this fast-moving issue. From C.A.R. President Steve White: “We are disappointed that Congress has chosen to pay for tax reform on the backs of homeowners and the real estate industry. The House and Senate will now appoint conferees to work out the differences between the two bills. Both chambers must vote on a final bill before it is sent to the president.We thank California Sens. Dianne Feinstein and Kamala Harris for voting No on the Senate bill and for believing their constituents deserved better.
“We also thank all C.A.R. members who made their voices heard by contacting their members of Congress asking them to vote No; however, the fight is not over!”
C.A.R. and NAR will be launching new Calls for Action, watch for updates in CVAR At A Glance.