Many in the housing Industry are concerned that President Trump’s proposed tax plan, which will double the standard deduction, will negatively affect the tax benefits of owning a home. For millions of homeowners, their home represents their ambitions and their savings, and is a place where their family memories are made.
The existing tax incentives help people get to the point. Mortgage interest deductions and the real estate tax deductions make home ownership more affordable. But these tax benefits are at risk with the new plan which is being proposed. These proposed changes could cause a devastating blow to home ownership. Home values could plummet and homeowner’s equity may ed up being erased if the tax reform eliminates the tax incentives that many depend on. And prospective new owners will find it harder to achieve that dream. By doubling the standard deduction, fewer households would be able to claim the mortgage interest and real estate taxes deductions.