How the Tax Cuts and Jobs Act might impact you.
If you’re like most Americans, you’ve heard of the proposed Tax Cuts and Jobs Act that’s just been rolled out. And, if you’re like most Americans, you probably haven’t had time to sit down and read the 400-plus page document because…well…you have other things to do.
Like work so that the government has something to tax.
Anyway, because you don’t have time to read the bill – which, incidentally is “stated in terms of amendments to the Internal Revenue Code, so if you haven’t memorized the Code yet, you are going to have to refer to it.” (Forbes) – then you need resources you can trust to ask what all of this means for YOU.
We’re here to help.
When it comes to real estate, it’s important to know how the proposed changes will affect your investment. So, we asked Patrick Finney what this bill means for the average American.
“Many of you might be really concerned of course about the tax changes to mortgage deductions,” says Patrick Finney of FINN Real Estate. “And you’re right! As the cost of home prices have gone up and the tax deductions are being cut in half, this is definitely a major blow to the average homeowner.”
“It will affect most people who have recently purchased property as opposed to people who have a smaller mortgage payment from a purchase made many years ago,” explains Patrick Finney. “People who have already paid off their home will not be affected. In essence, the millennials, Gen Y and Gen X are going to take a beating on this. However, those people in this situation simply won’t have to pay more taxes than the average person.”
The good news?
“On the bright side,” says Patrick, “both single and married persons have double the tax exemption or credit as they used to.”
Patrick Finney is the owner and managing broker of FINN Real Estate in Denver, Colorado. He has been named a Five Star Agent by 5280 Magazine and has over 13 years of industry experience with $240,000,000 of real estate sold. He is an active supporter of many non-profits, including the National Multiple Sclerosis Society and the Leukemia & Lymphoma Society.