How Does The New Tax Bill Impact Homeowners?

Real Estate Broker/Owner with Amanda Davidson Real Estate Group 0225221517

How Does The New Tax Bill Impact Homeowners?

Many homeowners, buyers, and sellers are wondering how the tax reform legislation that passed in December is going to impact them. As with most things in real estate – it depends. There are several items in the bill that affect the housing market. Below is an overview of what it means for homeowners, buyers, and sellers.

Mortgage Interest Deduction – through the end of 2025 new home buyers will only be able to deduct interest on the first $750,000 of a mortgage. This is a decrease from $1 million. The deduction cap will revert to $1 million in loan value in 2026. This has no impact on EXISTING mortgages – only new home buyers. It’s important to remember that these are loan amounts and not sale prices.

New Tax Bill

Home Equity Loan Interest Deduction – the new bill suspends the interest deduction on home equity loans until 2026. This is a change from deductions being allowed for loans up to $100,000. That said, there is a caveat – interest on a home equity loan can be deducted if the proceeds are used to substantially improve the home.

State and Local Property Taxes with the new legislation the property tax deduction is limited to $10,000. There was previously no cap. ATTOM Data Solutions estimates that approximately 90,000 households will be impacted by this change in the DMV area.

Capital Gains – no change, the deduction for up to $500,000 for joint filers or $250,000 for single filers from selling a primary home remains. The requirement that the home was the filer(s) primary residence for at least two of the last five years also remains. 


If you're interested in learning more about the new legislation, read our full article on how the tax bill impacts homeowners.



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Amanda Davidson Real Estate Group





Amanda Davidson

Amanda Davidson Real Estate Group

Broker - Owner
Licensed in VA and DC

6485 Old Beulah Street
Alexandria, VA 22315

Cell: 703.431.3755
Fax: 703.562.7057


Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Rebecca Gaujot, Realtor® 01/03/2018 02:54 PM
  2. Gabe Sanders 01/12/2018 11:50 PM
  3. Will Hamm 01/23/2018 03:08 PM
  4. Joan Cox 02/06/2018 06:02 AM
Real Estate General Information
Virginia Fairfax County Alexandria
home sellers
home buyers

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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Thank You for getting this out Amanda for peopleto understand.  Can I reblog it in a week from now?


Jan 03, 2018 09:01 AM #1
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

Very good message Amanda. I think many of us are confused about how the new tax bill will impact homeowners!

Jan 03, 2018 12:29 PM #2
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for sharing the information. I will bookmark this post 

Jan 03, 2018 02:54 PM #3
Rebecca Gaujot, Realtor®
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Thanks for the information on the new tax bill, Amanda. I reblogged this post.

Jan 03, 2018 02:55 PM #4
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for this recap, Amanda.  Many folks will be heading to their accountants in the next few months.

Jan 04, 2018 05:35 AM #5
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Amanda, this is excellent information to get out your readers, and many are wondering how this new tax reform will affect them.   

Jan 04, 2018 07:26 AM #6
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Homeowners will really appreciate how easy you make it for them to understand the changes!

Jan 04, 2018 08:13 AM #7
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Amanada hello.

This is a very important information.

Thank you for the great post.

Good day.

Jan 04, 2018 11:19 AM #8
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We have so few home over $750,000 that it will have very little impact on our homeowners. Our property taxes are moderate and we have no state or local income taxes. I guess we are blessed.

Jan 04, 2018 07:59 PM #9
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

No one knows yet....But they will soon !

Jan 13, 2018 05:56 AM #10
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

Interesting article, Amanda!  Thank you for sharing your knowledge on this subject.  Have a great weekend.

Jan 13, 2018 08:05 AM #11
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Amanda S. Davidson ,

I was so glad to see Will Hamm re-blogged your post! I missed it..what great information! In Austin 97% of all home owners have taxes less than $10,000 so is not affecting our city..94% of all mortgages are less than $750,000 and we don't have state income taxes. Works for us!

Jan 23, 2018 05:22 PM #12
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Alexandria Virginia Homes For Sale
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