New Federal Tax Law Stuns Bay Area Homeowners
Bay Area homeowners are stunned by the new federal tax laws that will make owning valuable homes non-beneficial.
"The new federal tax code is expected to strip the typical San Jose homeowner of $5,400 in deductions this year, the highest of any metro area in the country, according to a new report by Apartment List," according to National Mortgage News.
"The typical East Bay homeowner will lose $4,500 worth of deductions, roughly $110,000 over the course of a 30-year mortgage."
Effectively, experts believe this will increase the cost of homeownership in California and lower the number of homes for sale on the market. Homes will start to lose value pretty rapidly.
"The new tax law caps deductions for state and local taxes at $10,000 and reduces mortgage interest deductions on new loans from $1 million to $750,000, pinching residents in states like California with higher local taxes and housing costs," according to the report.
"The new code also doubles the standard deduction, meaning fewer homeowners will itemize on their taxes."
To learn more about what the new federal tax laws means for Bay Area homes, click on the image above.