A new report from Citigroup estimates that homeowners in states with hot real estate markets like California, New York, and Connecticut will see their tax bills go up by an average of $3,000.
That’s because homeowners will no longer be able to deduct the full amount of state taxes they pay on their homes from their federal taxes, so that while buying a home might not be any more expensive, owning it will be. There are also new caps on mortgage deductions.
The tax plan raises the basic deduction for every individual taxpayer by over $5,000, but that amount could be dwarfed by the property tax deductions people in expensive states are now losing.
The more invested you are in your home, the more you could get hit.
If you own real estate, you need to optimize your taxes. You need a Tax Ninja now more than ever.
Contact us for a consultation.