MAKING SENSE OF SOME OF THE TAX REFORM CHANGES

There have been a lot of questions surrounding the recent tax reform bill that was passed in Washington. The National Association of Realtors had a lot of influence relative to the impact on aspects having to do with real estate and managed to help protect essential and important homeowner benefits such as the exclusion of capital gains on the sale of a home, and the mortgage interest deduction for primary and secondary homes. Those and other last-minute changes to the Tax Cuts and Jobs Act of 2017 are as follows, in easy to understand terms:

  • Capital gains exclusion. In a huge win for current and prospective homeowners, current law is left in place on the capital gains exclusion of $250,000 for an individual and $500,000 for married couples on the sale of a home. Both the House and the Senate had sought to make it much harder to qualify for the exclusion. 
  • Mortgage interest deduction. The maximum mortgage amount for households deducting their mortgage interest has been decreased to $750,000 from the current $1 million limits on primary and secondary homes. The House bill sought a reduction to $500,000. 
  • State and local tax deductions. Both property taxes and state and local income taxes remain deductible, although with a combined limit of $10,000. Both the House and Senate bills sought to eliminate the state and local income tax deduction altogether. 
  • Pass-through entities. The bill significantly reduces the effective rate of tax on business income earned by independent contractors and income received from pass-through entities. This change will potentially lower the taxes of these types of professionals.

We will be publishing more information as it is made available, as the professionals and experts continue to decipher myriad details of the bill.


Recent Blog Posts

Why 44% of Home Searches Start Online (and What to Do Next)

Work with an agent and search for homes the right way to experience buying success.

Coldwell Banker Carlson Real Estate Complete Homebuying Guide for the Stowe, VT

Many factors make Stowe an appealing place for permanent residences and second homes.

The Coldwell Banker Carlson Real Estate Ultimate Guide to Selling Your Home in Morristown, VT

Steps to take you from planning to sold!

Market Report

WATERBURY

Waterbury saw declines across the board in terms of number of sales, new listings, and average and median sales prices. Where the market excelled was the sales price … Read more

Market Report

LAMOILLE

In Lamoille County, an area comprising 9 towns, in addition to Stowe, there was a decrease in overall sales by 15%, which was reflective of the market as a whole. The … Read more

Market Report

STOWE

Stowe saw a decrease in overall sales volume compared to 2021, with a decrease of 41% in Q2 2022. While there was a decrease in sales, there was an increase in invento… Read more

Rent

RENTAL POLICIES

These are general policies regarding our rentals. There might be specific policies that apply to specific properties.

Rent

6 REASONS YOU SHOULD NEVER BUY OR SELL A HOME WITHOUT AN AGENT

This is likely the biggest financial decision of your entire life, and you need a Realtor® if you want to do it right.

STOWE VT SPRINGTIME EVENT!

Over the next few weeks, there is a lot to look forward to from Craft Brew Races to the Roots event.

Work With Us

If you’re looking for the largest selection of real estate available in our area, you’ve come to the right place and we’re here to help you.

Follow Us On Instagram