Proposed Tax Bill: What does it Mean for the Real Estate World?
Much buzz is swirling around the proposed Tax Reform and the repercussions that will ensue if it is passed as it stands. The proposed tax reform if passed, would affect individuals who sell their home before the five year period has expired. If the house is sold prior to the five year period, the sellers would face a tax of 15% from their profit. This potential change could have a significant impact on the housing market and it would incentivize individuals and families to stay in their homes longer which could result in low inventory and a slower moving market.
“The ability for you to take that equity and move into a new house enables you to move up,” Malnati said. “And if that equity is eroded by taxes, you have less purchasing power. It’s a problem.”
To read further on this important topic Click HERE to view the full article from 9News Brandon Rittiman and Anna Staver.