Conference Committee Tax Legislation, Hurts a Little Less

The Tax Conference Committee released it’s joint legislation.  Here is how some of the homeownership provisions changed:

 CurrentHouse BillConference Bill
Mortgage Interest DeductionCapped at $1,000,000
(Can deduct interest on home equity loans)
Capped at $500,000
(Exemption for current homeowners)
(Can not deduct interest on home equity loans)
Capped at $750,000
(Keeps Second Home MID)
Standard Deduction
(Raising will naturally deincentivize homeownership for many )
Single: $6,350
Married: $12,700
Personal Exemption: $4,050
Single: $12,000
Married: $24,000
No Personal Exemption
Single: $12,000
Married: $24,000
No Personal Exemption
State and Local Tax DeductionCan deduct all state and local taxesEliminates state and local tax deduction.
(Can deduct Property Taxes up to $10,000)
Can deduct state and local taxes up to $10,000
Capital Gains Exclusion Can exclude capital gain on Real Estate up to $250,000 (Single) or $500,000 (married) if you have lived in the house for 2 of the last 5 years. Can exclude capital gain on Real Estate up to $250,000 (Single) or $500,000 (married) if you have lived in the house for 5 of the last 8 years. Keeps current version

Other Notables:

  • Adjusts medical deduction
  • Can still deduct student loan interest
  • Eliminates Obamacare individual mandate
  • Increases child tax credit to $2,000

For More Information and Individual Rates Click Here

Thanks to your advocacy efforts, this Bill is much better than the House version, but it is still a threat to homeownership. 

This bill is expected to be passed through both houses of Congress this week.

Please continue to ask your members of Congress to

  1. Keep the Mortgage Interest Deduction Capped at $1 Million

  2. Keep the Current State and Local Tax Deduction

Representative Dana Rohrabacher 202-225-2415

Representative Mimi Walters 202-225-9177

Representative Darrell Issa 202-225-3906

Representative Ed Royce 202-225-4111

Here is what NAR President Elizabeth Mendenhall has to say about the bill:

“We remain concerned that the overall structure of this bill poses problems for homeowners and the broader housing market, but the conference committee has made some important improvements to the House and Senate legislation that ultimately will benefit some homeowners and communities. We are particularly pleased with the treatment of capital gains on the sale of a home and the preservation of deductions for second homes. We are also grateful that the positive changes for commercial real estate and real estate professionals from the Senate bill have survived.”

Call for Action

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