Stay on top of the changes to the new tax law

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Robert Freedman | REALTOR Magazine

Are you ready for tax season? The new tax law brings a few changes that are crucial for real estate professionals to understand. Check out some of the changes in the article and video linked below. 

[…] The 20 percent business income deduction is just one provision in the tax law that’s important to real estate professionals. The law also lowers tax rates, increases the standard deduction, eliminates personal exemptions, lowers the cap on the mortgage interest deduction, and imposes a cap on state and local tax deductions.

The lower tax rates are expected to be a win for taxpayers generally, because the law makes across-the-board reductions in the tax brackets. The new standard deduction is expected to greatly reduce the number of people who itemize their deductions, thereby saving people time and in many cases money. But it also blurs the distinction between owning and renting for tax purposes, and that ultimately might work against homeownership. And the caps on the MID and state and local deductions could reduce people’s incentive to buy more expensive homes, particularly in high property-tax states like California, Illinois, and New Jersey.

To read the full article, click here: Are You Ready for Tax Season?. You can also watch a video on the topic from the National Association of REALTORS here.