The chart below from Bank of America shows a heat map for average amount claimed under SALT deductions, with redder states farther above $10k and greener states below. The Northeast and West coast - traditionally liberal bastions and, according to some, explicitly targeted by the Trump administration - generally have higher average amounts and will feel most of the pain. Meanwhile, the West and South have lower average amounts and so those housing markets will be less impacted.
Another provision affecting housing is the change in mortgage interest deductions (MID). Now mortgages up to $750k qualify, versus up to $1mn previously, and only if the mortgage is for your primary residence. Loans that were made before Dec 14 will be grandfathered in.
Taking into account the cap on SALT deductions and the doubling of the standard deduction, Zillow estimated that the percent of homeowners that will itemize falls to 14% from 44% prior to the tax changes. The table shows the counties that will be most affected.
-RW
(via
ZeroHedge)
Living in the Failed State of Connecticut and being a small business owner and employer, I will be hit hard by the SALT limits. But unlike others, I don't blame Trump and Congress, I blame Connecticut for its unconscionably high taxes.
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