Homeowners: Here’s what’s in the tax bill for you

21 Dec Homeowners: Here’s what’s in the tax bill for you

Republicans on Friday unveiled the final version of their tax bill, and it has new restrictions for some homeowners.

Senate and House Republicans have reconciled their versions of tax legislation and the final plan shrinks some popular deductions. Lawmakers aim to vote on the bill next week and then send it to President Trump’s desk.

Here’s a look at what the changes could mean for future and current homeowners:

Downsized mortgage interest deduction

New homebuyers would now only be able to deduct interest on the first $750,000 of mortgage debt on a newly-purchased home.

That’s down from the current $1 million threshold, but higher than the $500,000 limit the House proposed in its tax overhaul in November.

Current homeowners would not be affected by the lower cap.

The deduction has helped make home buying more affordable for some homeowners. While the median home price nationwide is currently $254,000, buyers in some cities face much higher price tags.

The lower limit could make it harder for house hunters in expensive cities. For instance, in New York City, nearly 64% of mortgages on homes sold this year were over $750,000, according to data from ATTOM Data Solutions. And in San Francisco, 58% of home loans exceeded the new cap.

Read Via Money.ccn.com