Happy New Year, Fellow Taxpayers
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” – William Arthur Ward
Here’s the number one question I’ve been getting the past week….”What does the new tax bill mean for me?”
Here’s what we do know:
- Mortgage interest deductions are limited to a maximum loan debt of $750,000, combined on a first & second residence.
- Combined personal property tax and IL state income tax deductions are capped at $10,000
- “Home Equity Line of credit” or “HELOC” interest is no longer deductible
What will this do to Chicago home prices?
By losing the above three deductions, Buyers may experience an impact in their purchasing power.
Buyers’ purchasing power could be further reduced if the Fed follows through on the 4 anticipated interest rate hikes throughout 2018.
What do we know for sure?
What affects Buyers will eventually affect Sellers!
It’s time to adjust the sails.
Prepare for the “wind” by taking a look at this link that explains how the Act changes income taxes, deductions for child and elder care and business taxes.
Want to discuss your real estate holdings? Give me a call or send me an em.
Wishing you a happy, healthy and productive 2018!
PS: For specific tax advice, please speak with your tax professional.