This week, the Republicans announced their new tax plan, the Tax Cuts and Jobs Act, which caps the mortgage interest deduction at mortgages of $500,000 or less.
The GOP's new plan also changes the requirements for sellers deducting the profits from their home's sale. Homeowners must now have lived in their home for five of the past eight years, only deducting gains once every five years. Previously, sellers only had to live in the home two out of the last five years, deducting every two years, per HousingWire.
“We are currently reviewing the details of the tax proposal released today, but at first glance it appears to confirm many of our biggest concerns about the Unified Framework,” National Association of Realtors President William Brown said. “Eliminating or nullifying the tax incentives for homeownership puts home values and middle class homeowners at risk, and from a cursory examination this legislation appears to do just that."
