The GOP Tax Bill Will Place A Dagger In The American Dream Of Home Ownership – HuffPost

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The House bill (HR 1, Sec. 1303(B)) caps the property tax deduction at ten thousand dollars, and reduces the mortgage interest deduction from $1.0M to $500K. SALT was to be eliminated entirely, but that is now being negotiated as part of amendments to the House bill. The property tax cap would apply for taxable years after December 31, 2017, but, critically, not only would it apply to new purchases, but to existing homeowners too! So, for homeowners that have owned their homes for years and have relied on the property tax deduction to, in some measure, offset the cost of their homes and mortgage payments, the present House bill will coldly strip that benefit away. Unfair you say? Absolutely! The same would apply to the mortgage interest deduction (Will Tax Reform End The American Dream of Owning A Home?) Drafters of the House bill say to help offset these losses, the standard deduction will double, from $12,700 to $24,400 for joint filers and from $6,350.00 to $12,200 for singles. But isn’t the standard deduction for those that do not itemize? Those that rely on deducting SALT, mortgage interest and property taxes on their 1040s do so because they itemize and thus cannot take a standard deduction so any increase in the latter in the House bill is, in practical terms, useless and meaningless.

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