Tax Reform – Final Bill
We knew these were coming:
The legislation preserves the deductions for mortgage interest and charitable giving, though it lowers the cap on the mortgage deduction from $1 million to $750,000.
Seeking to win over House Republicans from high-tax states, the conference committee legislation caps the state and local tax deduction at $10,000, with filers allowed to deduct property taxes and state and local income and sales taxes.
Those aren’t quite as generous as before, but a happy compromise.
What about the change from owning your home for two out of the last five years to get up to $500,000 tax-free profits? Both the House and the Senate wanted to change the time period to owning five out of the last eight years.
I found this on page 663 of 1101 here:
I’m not a lawyer, and could be a little woozy after scrolling 600+ pages, but I think they threw it out altogether! Before I get too excited, can an attorney tell us that ‘No provision’ means nothing was included in the final bill?
If the two-out-of-five-years is still the law, then the realtor spokespeople better be running to the microphone to declare total victory, and assuring everyone that property values won’t be going down 5% to 15% now!