C.A.R. Comment on Tax Bill Being Voted on This Week
“We’re still reviewing the exact details of the 500-page bill,” says C.A.R. President Steven White, but what is known is that the limit for the mortgage interest deduction (MID) will be reduced from the current $1 million to $750,000 on mortgages for a first or second home, and the deduction of state and local tax deductions, including property, sales, and income tax, are capped at $10,000.
The lower mortgage interest deduction cap “punishes” homebuyers in high cost states such as California, according to White, and maintains provisions “that weaken homeownership tax incentives.”
As a result, C.A.R. WILL CONTINUE TO OPPOSE THE BILL and call on California REALTORS® to join in the effort, even if NAR chooses a different course. California members should anticipate a Call for Action on the matter.
The final Congressional Tax Reform bill will be voted on this week by both Houses of Congress.
“C.A.R. opposes the proposal because it dramatically weakens the tax incentives for homeownership and increases taxes on hundreds of thousands of California homeowners,” says White, making it “more difficult for Californians to attain the American dream.”