I believe everyone is very aware of the proposed congressional tax reform. California will feel an impact as many of changes will certainly impact current homeowners as well as potential home owners.
Listed below are a few of the provisions in the Tax Cut and Job Act that will impact real estate:
Lowers the mortgage interest deduction cap from $1 million to $500,000 (will have significant impact as many California home owners carry high balance mortgages)
Eliminates the mortgage interest deduction on second homes (Tahoe, Hawaii and many other 2nd home markets will be impacted)
Homeowners would no longer be able to deduct the interest on home equity loans
Eliminates state and local income tax deductions
Caps property tax deductions at $10,000
Extends the qualification period for exclusion of capital gains tax on the sale of a primary home from two out of the last five years to five out of the last eight years
Message below from National Association of Realtors:
As you can imagine, these changes would remove the incentive for homeownership and unfairly hurt California homebuyers. California’s homeownership rate is already among the lowest in the nation, and we can’t afford for it to go lower.
Capping the mortgage interest deduction essentially nullifies the incentive for homeownership, thereby removing the incentive for people to buy homes. We all know that homeownership has and continues to be the best way for families to build wealth and move up the socioeconomic ladder.
Congress has incentivized homeownership through the tax code for more than 100 years, and they should not change things now.
That’s why I’m asking you to get involved in C.A.R.’s and NAR’s Call for Action. Tell Congress to oppose this and any tax reform proposal that dramatically weakens the incentive for homeownership.
Share this Call to Action and use these hashtags on your social media accounts #SaveHomeOwnership and #TaxReform
Kevin R. Kieffer is a Broker Associate and Realtor with Compass. His primary focus is the East Bay residential home market. He is a top producing agent and also leads a successful team of Realtors as one of top producing teams throughout all of California (Real Trends Ranking). He was recognized as a Five Star agent numerous years through an independent survey and has been featured in Diablo Magazine. He closed out 2017 in the top 1% of all agents in Contra Costa & Alameda counties and is currently one of the top producing agents in 2018 and awarded Quadruple Platinum Producer for the region. He has offices in Danville & Walnut Creek and has a team of experienced Realtors focusing on markets throughout the East Bay. Please give him a call and let him exceed your expectations!
Home ownership is commonly associated with a sense of accomplishment a
"Even having done our homework, my wife and I were still nervous and unsure of what to expect when we began shopping for our first home. Adding to the uncertainty of being first-time homebuyers, we were also renting a home that would require us to terminate our lease agreement early should we purchase a home before the expiration of our contract. Enter the EastBayPro Team of Kevin and Naomi Kieffer. Let me start off by saying Kevin and Naomi are without a doubt experts in the business of real estate. Buying, selling, renting, flipping, investing, property management…you name it, they know it. With that being said, we came across Kevin’s phone number when we drove passed a house we thought we might be interested in viewing. Kevin was the listing agent for the property and within a couple of short hours after speaking to him over the phone, we were back at the property and he was showing us the home. Kevin did a great job and was extremely knowledgeable of the property he showed us but in the end it was too small for our family’s needs. We later decided to have EastBayPro Team represent us as our buyer’s agent and we made a wise decision in doing so.
Kevin was always responsive in that whenever a property came on the market that we were interested in, all we had to do was give Kevin a call and he was there to show us the property within hours. We also spent a day with Kevin in which he showed us properties that he thought we would be interested in. I would like to note that we have four small children and they were with us at every showing. Kevin was great with them and had more patience with them than we did. It was on this day, that we found the house we fell in love with and Kevin was on top of putting an offer in for us immediately. The house was a short sale and as complicated as these transactions can be, they made it happen. We worked mostly with Naomi after our initial offer and as great as Kevin was, Naomi was even better (Sorry Kevin but your wife has you beat). Naomi was extremely responsive to any questions or concerns we had. When problems came up during the inspection process, Naomi was on top of it and was able to negotiate the price down beyond what we were expecting. Excellent job! Naomi was extremely organized and made the process, all the way through closing, run very smooth. But their service didn’t stop there. After closing, Kevin called our property management company for the house that we were leasing to see what it would take to break our lease earlier and minimize any penalties. Throughout the homebuying process, Kevin and Naomi fully represented our best interests and we believe that they went above and beyond what most agents would do for their clients. Two thumbs up for the EastBayPro Team of Kevin and Naomi as we would highly recommend!"