The new tax law could impact housing costs. How does this affect potential homebuyers, sellers, and current home owners? Mark Kuchik from Cross Country Mortgage shares what this could mean for homebuyers.
Kuchik says several changes were put in place after the law was signed. “There is a slew of changes effective January 1st, and right now it’s still to be determined what the total impact to the consumer will be. However, the good news is mortgage interest is still tax deductible for a mortgage amount up to $750,000, if it is considered acquisition debt. There is a lot of confusion around the tax law, so my recommendation is to seek out advice from a tax professional on your specific situation,” Kuchik said. “The mortgage amount dropped from the previous amount of one million dollars. The fact that our housing market in Indianapolis is very affordable, I do not see much impact on any of us here locally,” Kuchik said.
Kuchik says the tax law change could potentially help homebuyers. “The one tax law change that a lot of people don’t realize is the capital gains tax for corporations dropped from 35% to 21%. Already this is proving that it could be a game changer for our economy. A lot of these corporations are already starting to pass the savings on to their employees by giving them one-time bonuses or even increasing their hourly wages,” Kuchik said. “The trickle-down effect with employers and corporations sharing the tax savings with their employees, means that employees have more money in their pocket and more disposable income. Experience shows a lot of people will in turn, go out and look for larger homes or even a more desirable location,” Kuchik said.