At this point it’s hard to say for sure how the federal tax law overhaul will impact Americans, and in particular the real estate industry, but that hasn’t stopped anyone from speculating. Here are some opinions from around the web:
Steve Brown at The Dallas Morning News says he expects capping the property tax write-off at $10,000 will hurt some homeowners, especially homeowners in more expensive neighborhoods. He’s also afraid it will force some homeowners to hang onto their properties longer to avoid a tax hit, as well as impact people with plans to move across the country because they will no longer be able to write off the relocation expenses that are not reimbursed by their companies.
The National Association of Realtors says the reform “would eviscerate the current-law tax incentives for purchasing and owning a home for all but a small percentage of Americans.” The fear, according to the article, is that these changes will cause home values throughout the United States to plummet up to 10 percent or possibly more than that in higher cost areas.
Daniel Alpert, in an opinion piece for Business Insider, says he is afraid the reform will “set off a new systemic financial crisis and push the country back into recession.” He points to Reagan’s Tax Reform Act of 1986 as proof.