The Main Line Real Estate Agents at Sage Realty Want Homebuyers to Be Aware of The New Tax Law’s Impact
December 26, 2017 – Philadelphia, PA – The new Republican-led tax law will have a big impact on the housing market, both in the Main Line area and across the country, but some worrisome aspects were removed before passing. The Main Line real estate team at Sage Realty wants buyers to be aware of how this new law may impact them.
Impacts on Main Line Real Estate
One of the biggest, and most controversial, issues was how mortgage interest deductions would be handled. The maximum mortgage amount for those deducting their mortgage interest was reduced to $750,000, but the House version of the bill sought to reduce the amount to $500,000. Estimates by the Institute on Taxation and Economic Policy suggest that up to 29 million American households may find themselves limited in their ability to deduct mortgage payments from their local, state, or Federal taxes.
Fortunately, the capital gains exclusion was left in place, which benefits current and prospective homeowners. Both the House and Senate versions of the bill were intended to make qualifying for the exclusion more difficult, so this result is positive for the real estate market.
With regard to Pass through entities, the effective rate of tax on business income earned by independent contractors and income received from pass-through entities was reduced significantly.
The final aspect of the law that impacts Main Line real estate deals with state and local tax deductions. The two proposed versions of the bill sought to eliminate them completely, but in the end, the deductions remained: at a reduced limit of $10,000.
Sage Realty Is Here
Sage Realty keeps a close eye on issues that affect Main Line real estate and the industry as a whole. This tax law will change some things for home buyers and sellers. If you are in the market for a new home, a professional at Sage Realty can let you know how those changes will affect you and guide you through the process.
About Sage Realty LLC
Since its founding, each of Sage Realty’s team members have been devoted to being a different kind of Main Line real estate agent. The professional Realtors® of Sage Realty are focused completely on their clients’ best interests, finding each client the right home in the Main Line area, and at the right price in for their needs.
For more information or press inquiries, contact 610-687-4000 or visit https://www.findahomeinpa.com/.