Tuesday, November 7, 2017

GOP Tax Plan Would Eliminate Deductions for Mortgages on Second Homes.

Here's more bad news from Trump's tax "reform."

The GOP plan eliminates deductions for interest on mortgages on second homes.

This could have a significant impact on
certain areas of the country where vacation and second homes make up a disproportionate chunk of the local housing market, notes The Washington Post.

According to the Census Bureau's American Community Survey, homes classified as “for seasonal, occasional or recreational use” tend to be clustered along the coasts and in mountainous areas.

According to the Post, the changes to mortgage interest would apply only to upcoming loans — current mortgage holders with first and second homes would continue to be able to take the same interest payment deductions as under existing law. But if Republicans' plan becomes law, home prices in these regions are likely to be the most affected by the loss of the second-home deduction.


1 comment:

  1. Sounds like a under the radar crackdown on AirBNB and vacation rental. Wouldn't be surprised if the hotel lobby pushed for this.