Which areas will be impacted the most from the tax reform you might ask? According to this article from Realtor Mag, the three areas of the new tax law that impact real estate owners are
- The new maximum loan amount for your mortgage interest deduction used to be a million now it’s only $750,000.
- The new real estate property tax deduction has been capped to $10,000
- There’s a new standard deduction that seems to be a big one because it will result in fewer than 10 percent of tax filers to actually itemize their deduction according to the article.
To figure it all out here’s what NAR did. Nar reearchers calculated the share of homes with mortgages that are worth more than $750,000 as well as the share-owners who pay more than $10,000 for real estate taxes.
here’s the top 5 metro areas that will feel the new tax reform the most. For most of you in the country, you won’t have to worry about this at all, but us Californians certainly DO!
- San Jose-Sunnyvale-Santa Clara, CA
- San Francisco-Oakland-Hayward, CA
- Santa Cruz-Watsonville, CA
- Santa Maria-Santa Barbara, CA
- Urban Honolulu, Hawaii
The article provides a link an interactive map where you can find out how many home owners will be effected in the 382 metro areas that NAR studied.
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