Will property tax still be deductible after the expected tax reform/cut?

[Disappointed]

While mortgage interest deduction is pretty safe, what will happen to the property tax?

 

[Blue Collar Guy]

Looks like I missed it, they passed a tax reform? Link?

 

[jazz4cash]

One of the proposals eliminates deductions for local taxes. That includes state and local taxes on income and property. They say it's offset by lower Federal tax rates but for us it would be a hefty increase overall. I would think this would get killed before getting passed but I'm not sure many people are paying attention. The real estate lobby will protect the mortgage interest deduction.

There's also some effort to change status of muni bonds.

 

[Blue Collar Guy]

Great news, glad I didnt hear about this before. So no more property tax deduction and I cant deduct my 5 digit state income tax. Glad I had a nice dinner before I read this tidbit.

 

[Aerides]

I would not remotely begin to react to what is less than a postcard of tweeted maybe's coming out of DC at this point.

You'll drive yourself mad and look silly in the process.

 

[jazz4cash]

I would not remotely begin to react to what is less than a postcard of tweeted maybe's coming out of DC at this point.

You'll drive yourself mad and look silly in the process.

I agree. Its a long way from being reality but I do worry not enough folks are paying attention.

 

[Blue Collar Guy]

I agree. Its a long way from being reality but I do worry not enough folks are paying attention.

Count me in on the wasn't paying attention crowd. I thought the new law already got passed when I saw this thread. Just like the equifax breech, I still only heard about it here.

 

[jazz4cash]

Great news, glad I didnt hear about this before. So no more property tax deduction and I cant deduct my 5 digit state income tax. Glad I had a nice dinner before I read this tidbit.

Well they also wanna do away with the estate tax completely so your heirs will love that.

 

[meierlde]

Note that as part of the deal they are also discussing doubling the standard deduction.

 

[Just_Steve]

Note that as part of the deal they are also discussing doubling the standard deduction.

I would take the 2x standard over itemizing any day.

 

[Senator]

If the mortgage deduction or property taxes get eliminated, form a company, and rent the house to yourself.

Corporations will ALWAYS be allowed to deduct business expenses...

 

[tinlizzy]

Well they also wanna do away with the estate tax completely so your heirs will love that.

Not so fast....In return for doing away with the estate tax they want to tax life insurance proceeds.

 

[Ronstar]

Just like with health care, the expected tax reform ideas are speculation, proposed by individuals or groups with agendas, and discussion always gets political, and partisan. For that reason, tax proposals are fair topics for discussion once they are out of committee and under consideration by either of the two legislative bodies.

Therefore, the moderator team has closed the thread.