Dear CAR Member,
As I begin my term as your 2018 C.A.R. President, I have some very important news to share with you.
As you know, for the past several weeks, C.A.R. has been on the forefront advocating for homeownership as Congress moves forward with its tax reform proposals.
The provisions in the House bill that will adversely impact real estate include lowering the mortgage interest deduction cap from $1 million to $500,000, eliminating the mortgage interest deduction on second homes; eliminating state and local income tax deductions; capping property tax deductions at $10,000; and extending the capital gains exclusion qualification period from two years to five years, which further locks up badly needed inventory.
The Senate bill retains the $1 million mortgage interest deduction but completely eliminates the ability to deduct state and local income taxes, including eliminating property tax deductions. It also contains many of the provisions in the House bill.
Both of these plans are a direct attack on homeownership, and that’s why C.A.R. has placed an open letter advertisement today in some of California’s major daily newspapers to send a strong message to President Trump and California’s Congressional Delegation to look at ways to incentivize and increase homeownership rates, not increase taxes on families wanting to buy a home.
The open letter will run in a full-page ad in today’s Los Angeles Times, Orange County Register, Bakersfield Californian, San Diego Union-Tribune, Sacramento Bee, Modesto Bee, Fresno Bee, Wall St. Journal-DC edition, and Politico.
“Congress is considering legislation that would punish homeowners, eliminate the financial benefits for homebuyers and leave hundreds of thousands of people across California much worse off than they are today. If the goal of Tax Reform is to help middle-class Americans keep more of their hard-earned money, this proposal fails miserably,” the letter says.
“Tax reform shouldn’t hurt Californians, but this proposal does, in a big way. It eliminates important incentives that help first-time homebuyers and existing homeowners by capping the mortgage interest deduction and limiting property tax deductibility as well as capital gains exemptions. From the Oregon border south to San Diego, working Californians take a beating,” the letter continues.
I hope you can pick up a copy of one of those newspapers today and read the open letter. If not, look for it here.
CALIFORNIA ASSOCIATION OF REALTORS®