If you haven’t heard already, a new tax plan is in the works. House Republicans are preparing a tax plan that would reduce income taxes but make up for the loss by eliminating certain other tax deductions. Several tax deductions in danger are related to home ownership. Here are the home tax deductions that may be eliminated in 2017.
Currently, the amount paid for local real estate taxes is deductible for home owning Americans who itemize their deductions. According to ABC News, almost 35 million families take advantage of this tax deduction every year and save somewhere around $33 billion dollars. This is one of the home tax deductions that may be eliminated in 2017 under the new tax plan.
Mortgage interest tax deductions are a major benefit of home ownership. Thus, it would be extremely difficult to eliminate and such an attempt would meet high resistance. However, the tax law may be adjusted to target higher priced homes and limit how much mortgage interest is allowed under the deduction. It will be interesting to see more details on what is proposed.
Other Home Tax Deductions that May Be Eliminated in 2017
The above are just the known home tax deductions currently being discussed in the new tax plans. No solid information is released yet. The President is also set to propose his own tax plan. Given the broad impact that changes to the above home tax deductions could have, it is something that we all should keep an eye on!