LOS ANGELES, Nov. 14, 2017 /PRNewswire-USNewswire/ -- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today sent a strong message to President Trump and Congress that Californians would be hurt significantly by the current Tax Reform plan in a full-page open letter advertisement in some of California's major daily newspapers and national publications.
"Congress is considering legislation that would punish homeowners, eliminate the financial benefits for homebuyers and leave hundreds of thousands of people across California much worse off than they are today. If the goal of Tax Reform is to help middle-class Americans keep more of their hard-earned money, this proposal fails miserably," said C.A.R. President Steve White in the letter.
"Tax reform shouldn't hurt Californians, but this proposal does, in a big way. It eliminates important incentives that help first-time homebuyers and existing homeowners by capping the mortgage interest deduction and limiting property tax deductibility as well as capital gains exemptions. From the Oregon border south to San Diego, working Californians take a beating," White continued.
The open letter will run in a full-page ad in today's Los Angeles Times, Orange County Register, Bakersfield Californian, San Diego Union-Tribune, Sacramento Bee, Modesto Bee, Fresno Bee, Wall St. Journal-DC edition, and Politico.
The provisions in the House bill that will adversely impact real estate include lowering the mortgage interest deduction cap from $1 million to $500,000, eliminating the mortgage interest deduction on second homes; eliminating state and local income tax deductions; capping property tax deductions at $10,000; and extending the capital gains exclusion qualification period from two years to five years, which further locks up badly needed inventory.
The Senate bill retains the $1 million mortgage interest deduction but completely eliminates the ability to deduct state and local income taxes, including eliminating property tax deductions. It also contains many of the real estate provisions in the House bill.
Leading the way... ® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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SOURCE CALIFORNIA ASSOCIATION OF REALTORS