If you’ve been paying attention to the news, you know that the Senate and House of Representatives have a couple important tax proposals to vote on that will have a big impact on the Bay area housing market and your decision-making as a buyer or seller.
There are three key points they’re voting on that you need to be mindful of:
1. How you deduct mortgage interest. They’re trying to cap (or in some circumstances, eliminate) your ability to deduct mortgage interest, which can be a huge write-off at the end of the year for most people.
2. Your ability to deduct property taxes. This is something they’re trying to eliminate. If you’re buying a home in the Bay area, where the median sale price is $1 million or more, property taxes represent a hefty amount that you may lose the ability to write off.
3. Capital gains. When you sell your property and you profit substantially, you pay capital gains. They’re trying to extend the amount of time you need to live in your home before getting your $250,000 or $500,000 exemption, which can be a huge increase in your tax liability if you’re thinking of selling.
It’s important that you’re aware of what’s at stake, and I have a great resource available if you’d like to learn about the matter further. One of my partners is a reputable local CPA, and he is willing to break down this situation for you so you know how it affects you specifically. If you’d like to take advantage of this free consultation, let me know.
Otherwise, if you have any other questions or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.