Category: Uncategorized

By Suzanne De Vita

The Republican party’s self-imposed Christmas deadline for the widely debated tax bill is fast approaching. Last week, Republican lawmakers announced they had the votes necessary to pass the converged Tax Cuts and Jobs Act bill. As the process moves forward, details are changing quickly, and, now, a couple of steadfast voters may not cast their ballots.

The lineup of confirmed voters has changed since the voting of the Senate tax bill. Sen. John McCain (R-Ariz.), who was a key supporter, will be absent during tomorrow’s vote as he continues his fight with cancer. He flew back to Arizona after being recently hospitalized in the Washington area for chemo-related side effects. Sen. Thad Chochran (R-Miss.) is also reportedly ill, but is expected to vote. Republicans gained a last-minute turnaround with Sen. Bob Corker (R-Tenn.), who initially voted against the Senate bill, but has now flipped to yes.

The absence of Sen. McCain and Sen. Chochran, however, does not point to an upcoming loss, as the Republican party won over key holdouts on Friday. Sen. Susan Collins (R-Maine), who was previously on the fence, has confirmed her support. In addition, Sen. Mike Lee (R-Utah) and Sen. Jeff Flake (R-Ariz.) have not declared their votes (at press time), but shared their approval over the child tax credit and a gradual phase-out of the five-year expensing provision, both of which made it into the final version of the bill.

Full details of the bill emerged on Dec. 15. The final bill features two major tax policies that will impact real estate:

• Mortgage Interest Rate Deduction Capped at $750,000

This will not affect current homeowners, but those who purchase once the bill has been passed. Those who purchase in costly cities may not benefit from the lowered limit. It may also keep homeowners from listing and trading up to a more expensive home if they will not reap the rewards of the tax deduction.

• $10,000 Limit on Property Tax Deduction

Homeowners in high-tax states may see a tax increase, as they will no longer be able to fully deduct state and local property taxes, in addition to income or sales tax.

Some of the provisions also come with expiration dates, according to the Wall Street Journal. Individual tax cuts and a 20 percent business deduction expire in 2025. Additionally, the $2,000 child tax credit and $10,000 limit on the state and local deduction may lose value over time due to inflation, the WSJ reports.

Key influencers in the real estate industry continue to speak out against the bill. The National Association of REALTORS® (NAR) released a statement last week saying they will continue to fight for homeowners.

“Homeownership is an aspirational goal for millions of Americans, but getting there isn’t always easy,” said NAR President Elizabeth Mendenhall. “Middle-class families count on tax incentives like the mortgage interest deduction and the state and local tax deduction to make homeownership a more affordable prospect. REALTORS® will continue to advocate for these and other important provisions as the tax reform debate continues.”

Meanwhile, …read more

From:: Finance and Economy

By Suzanne De Vita

The Republican party’s self-imposed Christmas deadline for the widely debated tax bill is fast approaching. Last week, Republican lawmakers announced they had the votes necessary to pass the converged Tax Cuts and Jobs Act bill. As the process moves forward, details are changing quickly, and, now, a couple of steadfast voters may not cast their ballots.

The lineup of confirmed voters has changed since the voting of the Senate tax bill. Sen. John McCain (R-Ariz.), who was a key supporter, will be absent during tomorrow’s vote as he continues his fight with cancer. He flew back to Arizona after being recently hospitalized in the Washington area for chemo-related side effects. Sen. Thad Chochran (R-Miss.) is also reportedly ill, but is expected to vote. Republicans gained a last-minute turnaround with Sen. Bob Corker (R-Tenn.), who initially voted against the Senate bill, but has now flipped to yes.

The absence of Sen. McCain and Sen. Chochran, however, does not point to an upcoming loss, as the Republican party won over key holdouts on Friday. Sen. Susan Collins (R-Maine), who was previously on the fence, has confirmed her support. In addition, Sen. Mike Lee (R-Utah) and Sen. Jeff Flake (R-Ariz.) have not declared their votes (at press time), but shared their approval over the child tax credit and a gradual phase-out of the five-year expensing provision, both of which made it into the final version of the bill.

Full details of the bill emerged on Dec. 15. The final bill features two major tax policies that will impact real estate:

• Mortgage Interest Rate Deduction Capped at $750,000

This will not affect current homeowners, but those who purchase once the bill has been passed. Those who purchase in costly cities may not benefit from the lowered limit. It may also keep homeowners from listing and trading up to a more expensive home if they will not reap the rewards of the tax deduction.

• $10,000 Limit on Property Tax Deduction

Homeowners in high-tax states may see a tax increase, as they will no longer be able to fully deduct state and local property taxes, in addition to income or sales tax.

Some of the provisions also come with expiration dates, according to the Wall Street Journal. Individual tax cuts and a 20 percent business deduction expire in 2025. Additionally, the $2,000 child tax credit and $10,000 limit on the state and local deduction may lose value over time due to inflation, the WSJ reports.

Key influencers in the real estate industry continue to speak out against the bill. The National Association of REALTORS® (NAR) released a statement last week saying they will continue to fight for homeowners.

“Homeownership is an aspirational goal for millions of Americans, but getting there isn’t always easy,” said NAR President Elizabeth Mendenhall. “Middle-class families count on tax incentives like the mortgage interest deduction and the state and local tax deduction to make homeownership a more affordable prospect. REALTORS® will continue to advocate for these and other important provisions as the tax reform debate continues.”

Meanwhile, …read more

From:: Real Estate News

By Susanne Dwyer

Even with economic gains and employment growth, homebuyers and sellers are less optimistic about their prospects, according to recently released findings from a survey by the National Association of REALTORS® (NAR).

NAR’s quarterly Housing Opportunities and Market Experience (HOME) report reveals 60 percent of renters believe now is a good time to buy a home, up from 57 percent this time last year, but down from 62 percent last quarter. Seventy-six percent of homeowners, conversely, report now is a good time to list their home for sale, up from 62 percent this time last year, but down from 80 percent last quarter.

Cost and limited options are partly responsible, says NAR Chief Economist Lawrence Yun.

“The trifecta of faster economic expansion, robust hiring and low mortgage rates should be generating a surge in optimism and home sales as 2017 winds down,” Yun says. “Sadly, this is not the case. While overall demand remains high, it is not translating to meaningful sales gains. Too many prospective first-time buyers see few options within their budget and home prices that are rising much faster than their incomes. Until we start seeing a steady increase in new and existing inventory, sales will fail to deliver on their full potential and many would-be first-time buyers will be forced to continue renting.

“The good news for possible inventory gains heading into 2018 is the fact that a much larger share of homeowners compared to a year ago think it’s a good time to sell,” says Yun. “However, the decline in the latest quarter is worth monitoring. REALTORS® say the lack of new-home construction in their markets is giving many potential trade-up buyers hesitation about putting their home on the market out of fear they won’t find another property to buy. This indecisiveness only exacerbates tight inventory conditions and slows housing turnover.”

Consumers, doubly, are not as confident about the economy, the report shows. The report’s Personal Financial Outlook Index, which gauges survey respondents’ sentiment on their financial situation over the next six months, dipped to 59.1 in December from 62.0 in September.

For more information, please visit www.nar.realtor.

For the latest real estate news and trends, bookmark RISMedia.com.

The post NAR: Even With Economic Gains, Homebuyers and Sellers Unsure appeared first on RISMedia.

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From:: Finance and Economy