Article by: Grecia Aguilar
Credit: ABC Channel 10 New San Diego
President Trump’s outline on tax reform could have a big impact on homeowners.
Owning a home comes at a hefty price living in San Diego
“Here in San Diego, with the median house price at $550,000,” said Mark Goldman, lecturer of real estate at San Diego State.
But homeowners get multiple benefits come tax time.
Namely, they can write off the interest they pay on their mortgages and also deduct their property tax.
President Trump’s tax reform proposal may eliminate the property tax deduction.
“Will it impact a family making $70,000 to $100,000 a year? Yes it will,” said Goldman.
He said President Trump’s plan also calls for doubling the standard deduction.
So, a married couple wouldn’t pay any taxes on the first $24,000 income they earn.
For individuals, it starts at $12,600.
That may render the mortgage interest tax write-off moot for some homeowners, because they could get more back by taking that standard deduction.
But Goldman said he doesn’t see that making home buying less attractive.
“Will it change property values? Will it change the activity in the market? Will it make my house go down in value? I don’t believe it will,” he said.
With peak home-buying season about to pick up, Goldman said it’s still a good time to buy a house.
“The market is very active right now, I don’t think that this proposal will reduce values so if you’re thinking of getting into the home-buying market this summer, get to it,” he said.