Kamila Sommer (Federal Reserve Board) & Paul Sullivan (American University), Implications of U.S. Tax Policy for House Prices, Rents, and Homeownership: This paper studies the impact of the mortgage interest tax deduction on equilibrium house prices, rents, homeownership, and welfare. We build a dynamic model of the housing market that...
(3) Implications of US Tax Policy for House Prices, Rents, and Homeownership Kamila Sommer and Paul Sullivan This paper studies the impact of the mortgage interest tax deduction on equilibrium house prices, rents, homeownership, and welfare. Show More Summary
By Paul Horn – With the recent tax bill changes, the old adage “location, location, location” has never been more true. Starting in 2018, the mortgage interest deduction will now be capped at $750,000 with interest paid on home equity or loans for vacation...
The Trump tax plan is going to hammer taxpayers and small businesses in states like California and New York where curbs on so-called SALT deductions and mortgage interest deductions will likely lead to a net tax increase for many. To try and mitigate - or even negate - its impact, New York Gov. Show More Summary
Republican leaders have been boasting that the tax reform bill “preserves the mortgage interest deduction, providing tax relief to current and aspiring homeowners,” as their bill summary puts it. But the 185-page bill is more complex than that. Show More Summary
Whether due to a massive flood of new supply or Trump's tax plan, which caps SALT, mortgage interest and property tax deductions, New York City landlords are suddenly in the unenviable position of having to slash rental rates to attract...Show More Summary
Rushing the tax bill through Congress limited the opportunity for debate to prevent unwise changes or implement smart reforms. But by the same token, some changes that make sense might not have... To view the full story, click the title link.
OVERLOOKED: New tax law is a huge win for renters. “For over a century, the federal tax code catered to homeowners and treated renters like second-class citizens. Homeowners have been able to deduct interest on their mortgages, home-equity loans and property taxes. Meanwhile, everyone — including renters — footed the bill for these deductions by […]
NEW TAX LAW COULD DEAL DEATH BLOW TO CHARITIES AND NON-PROFITS: Taxpayers claim charitable contributions, along with mortgage interest, property taxes and some other expenses, as deductions from their taxable income if they itemize and the total exceeds the standard deduction. Show More Summary
CNBC's Diana Olick reports the impact of the tax reform bill on property tax and mortgage interest deductions.
The Republican tax bill that appears headed for President Trump’s desk reduces the ability of home buyers to deduct mortgage interest, which will be a hit to home shoppers in Southern California and the Bay Area, where housing costs are sky-high. But the interest provision is far more limited in...
(December 19, 2017 07:21 PM, by David Henderson) Many tweeters have been making fun of the following Dianne Feinstein tweet: The Republican tax bill caps the mortgage interest deduction at $750,000 for new mortgages. In California, seven counties have average home prices that are more than $750,000:... (0 COMMENTS)
The latest version of the federal tax plan, up for a vote today, raises the mortgage interest deduction above the median sale price for a New York City home. Previous plans had proposed cutting in... To view the full story, click the title link.
A few brief comments on tax policy changes...There are a several policy changes that might impact housing: the reduction in the Mortgage Interest Deduction (MID), double taxation on certain income (elimination of State and Local income...Show More Summary
The NYT seem confused on how the new lower limit on mortgage interest deduction in the Republican tax bill would work. It told readers: "The bill does retain significant subsidies, allowing home buyers to deduct interest on mortgages...Show More Summary
We appear to have a deal on taxes. From changes to the home mortgage interest deduction to what wasn't included in the charitable donation deduction, here's what's in the final tax reform bill.
Among the key differences between the House and Senate versions of the Tax Cuts and Jobs Act are the changes to the mortgage interest deduction (MID). As the chambers work together to produce a conference report, capping the MID will be one of the big differences to work out. By way of background, under current […]
Robert Shiller shares his views on the Republican tax plan.
One of the most-controversial parts of Republican tax reform is the Senate's proposal to sharply limit the amount of mortgage interest homeowners can deduct from their taxes. Under current law, homeowners can deduct interest on mortgage loans of up to $1 million for two houses, plus interest on home equity loans worth another $100,000. Show More Summary