President Biden is working on a new tax plan that will raise tax rates for some. The increases could be among the most significant since the 1990s, and real estate investors and professionals are looking at the proposed plan to see how it might affect them.
The Tax Cuts and Jobs Act from 2017 put in place quite a few measures affecting property owners. For example, there was a $10,000 cap on state and local tax deductions. There was also a lower limit on the mortgage interest deductions. Instead of deducting up to $1 million, taxpayers can deduct the interest on loans up to a maximum of $750,000.
Democrats are pushing for a repeal of the $10,000 cap on state and local deductions, which was detrimental to homeowners in blue states with higher tax rates.
In general, President Biden is proposing eliminations to many of the Tax and Jobs Act components.
A few things that have been floated and could affect real estate include: READ MORE …