Real Estate and the New Tax Law

If you’ve been house hunting recently, you know that it’s pretty complicated. Negotiating a price and getting mortgage financing are time consuming and challenging tasks. Throw in the new Tax Cuts and Jobs Act and it’s confusing, too. The new tax law passed in December 2017 changed a lot of the rules that drive your decisions about real estate. Not knowing about the new tax rules could mean an expensive surprise derails your plans.

Not sure where to turn? Well, you’re in luck because I’m co-presenting a workshop with Arlington Community Federal Credit Union on Thursday, December 6, 2018, where all of your most complicated questions will be answered. The workshop is designed to raise the awareness of prospective and existing real estate owners about how the new tax law impacts decisions for purchasing and financing a home or rental property.

Three experienced professionals – a real estate agent, mortgage lender and tax practitioner (yes, that would be me) – share their insights based on questions and issues they encounter day-to-day with their clients. Participants are encouraged to bring their own questions about real estate purchasing, financing and related tax matters and hear what the subject matter experts have to say.

Some of the highlights we will address include:

  • The home mortgage interest deduction for purchases after December 31, 2017, is limited to $750,000 of indebtedness for first and second residences, including home equity used for home purchase/improvement. This will impact a significant percentage of taxpayers in the DC area and other relatively expensive real estate markets, like San Francisco.


  • The combined deduction for state and local income, sales and property taxes is limited to $10,000. This limit will significantly impact many high-income taxpayers and home owners in states with high real estate tax rates, such as New Jersey and New York.


  • Lower individual income tax rates reduce the tax savings aspect of home ownership. On the other hand, real estate is often an appreciating asset. With careful planning, real estate can be a great security blanket in retirement after the mortgage is paid off.


  • The new tax law does not impact real estate held for investment or business. No worries about the new individual tax deduction limits for mortgage interest and state/local taxes. Nice to know that some things stay the same.


Want to know more? Join us on Thursday, December 6, 2018, from 6:00 – 7:00 PM and learn about how the new Tax Cuts and Jobs Act impacts your real estate purchase and financing decisions. Register here: