Tax Reform Getting Closer

Written by Jim the Realtor

December 14, 2017

Congress is expected to vote on the final version of the Tax Reform Bill next week.  The terms being bandied about:

  1. The mortgage-interest deduction will remain, but only for loans up to $750,000 for future buyers, instead of $1,000,000.
  2. State and local income and property taxes can be deducted, up to $10K.
  3. Home sellers who have lived in their home for five out of the last eight years can exclude up to $500,000 in profits, tax-free.

What I haven’t seen is the date when the five-out-of-eight requirement begins – the House and Senate each had different versions.  If you see or hear how they decided to resolve it, let us know!

Republican lawmakers are trying to release the text of a compromise bill by Friday in order to hold votes in the House and Senate early next week, said Senator John Thune, the chamber’s third-ranking Republican.

12 Comments

  1. Susie

    Can’t wait to see the date the five-out-of-eight requirement begins. I just got off the phone with a real estate agent and then read this post, Jim. *Sigh*

  2. franklin jones

    Jim, do you know if the Property tax (SALT) limitation apples in tax year 2017 or 2018…as there would be an benefit to paying before the end of the year if your amounts will be over 10K…thanks for your opinion.

  3. Jim the Realtor

    Jim, do you know if the Property tax (SALT) limitation apples in tax year 2017 or 2018?

    I don’t know for sure but I don’t remember reading anything about it being for 2017.

    Hopefully a reporter will read the whole enchilada tomorrow and give us a summary.

  4. Rob_Dawg

    Excellent observation. If calendar year ‘18 is the cutoff then pay the April property tax in ‘17.

  5. Tom

    $500k for married couple or single person?

  6. Jim the Realtor

    $500,000 for married couples, $250,000 for singles.

    You can decide if it’s worth getting married to get the extra $250,000 tax-free!

  7. Rob_Dawg

    There are a handful of fence sitting senators looking for a little vig to solidify their vote. Cruz wants a larger child credit for instance.

  8. Jim the Realtor

    Wouldn’t it be great if it doesn’t pass? Just for the drama?

  9. Susie

    Breaking! Republicans to reveal final version of Tax Bill today @ 5:30 ET.

  10. Jim the Realtor

    Yep, they wait until nobody’s looking…….

  11. Name

    Yep, Jim, they dump it on a Friday afternoon at 5:30 pm. Absolute cowards!

  12. Jim the Realtor

    Yep, Jim, they dump it on a Friday afternoon at 5:30 pm.

    I won’t be back until 4-ish today but hopefully we can find the effective start date of the 5 out of 8 plan and publish it here later today.

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