The Trump administration's tax reform agenda continues to spark discussion, specifically regarding the proposed doubling of the standard deduction.
Citing the 2016 American Community Survey, The National Association of Realtors argues that changes to the standard deduction may negatively impact homeowners, particularly those living in less affordable areas who could use the mortgage interest and real estate tax deductions to save money.
Because of the large standard deduction, most renters will benefit. The new enlarged benefit for renters also lessen the incentive to become homeowners. It is noteworthy that the new tax reform will hurt new homebuyers while mortgage interest is higher during the first years of the mortgage and they would save substantially if they could use the mortgage interest deduction.
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