New York estate agents are urging legislators not to cut mortgage interest deductions for local taxes for fear of prompting a fall in house prices. The Senate version of the Republican tax plan would remove the deduction for local property taxes, while the House version would cap it at $10,000, and both would increase the period of homeownership required before qualifying for capital gains taxes, a move estate agents worry would reduce transaction volumes. According to analysis from Moody's, the most expensive property markets, such as US or New Jersey, could be the worst hit by the proposed measures.
US estate agents are urging legislators not to cut mortgage interest deductions for local taxes for fear of prompting a fall in house prices. The Senate version of the Republican tax plan would remove the deduction for local property taxes, while the House version would cap it at $10,000, and both would increase the period of homeownership required before qualifying for capital gains taxes, a move estate agents worry would reduce transaction volumes. According to analysis from Moody's, the most expensive property markets, such as New York or New Jersey, could be the worst hit by the proposed measures.