The recently unveiled Republican tax reform plan has been particularly unpopular with many in the real estate industry. The plan caps the mortgage interest deduction at $500,000 for new purchases and the property tax deduction at $10,000, but eliminates deductions for state and local tax payments. If enacted, the legislation would hit some areas harder than others, particularly in states like New York, New Jersey, California and Massachusetts, which have both higher real estate costs and higher state and local taxes. During a recent segment on Knowledge at Wharton’s SiriusXM show, Wharton real estate professor Benjamin Keys and Michael Knoll, co-director of the Center for Tax Law and Policy at the University of Pennsylvania Law School, discussed what the bill would mean for individual homeowners and for the housing market.
The Knowledge at Wharton SiriusXM show airs Monday through Friday, 10 a.m. – 12 p.m. EST, on Wharton Business Radio on SiriusXM channel 111.