Congress is expected to vote on the final version of the Tax Reform Bill next week. The terms being bandied about:
- The mortgage-interest deduction will remain, but only for loans up to $750,000 for future buyers, instead of $1,000,000.
- State and local income and property taxes can be deducted, up to $10K.
- Home sellers who have lived in their home for five out of the last eight years can exclude up to $500,000 in profits, tax-free.
What I haven’t seen is the date when the five-out-of-eight requirement begins – the House and Senate each had different versions. If you see or hear how they decided to resolve it, let us know!
Republican lawmakers are trying to release the text of a compromise bill by Friday in order to hold votes in the House and Senate early next week, said Senator John Thune, the chamber’s third-ranking Republican.