Representatives from the National Association of Realtors (NAR) and National Association of Home Builders (NAHB) have been camped out in Washington in opposition to current tax reform plans, which could cause housing prices to fall between 10 and 30 percent, according to NAR Senior Policy Representative Evan Liddiard.
The Washington Post reports that based on current details of the House and Senate tax reform bills (which differ slightly), plenty is at stake for middle-income homeowners. Eliminating or cutting the mortgage interest deduction, limiting deductibility of property taxes to the first $10,000 paid, eliminating deductions for second homes, eliminating deductibility for home equity loans, and more, are all on the table.
Liddiard said tax reform “makes it so the tax incentive of a property tax deduction and mortgage interest deduction would be meaningless. Owning and renting would be equivalent from a tax perspective. And, since tax incentives are built into today’s prices, they would drop by more than 10 percent in the short run” and up to 30 percent in some high-cost areas.
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