Real Estate Property Tax deductions were restricted in to $10,000. Deducting Mortgage Interest is restricted to $1 million per couple.
The federal limit on State And Local Tax deductions, known as the SALT cap, is set to expire for tax years after 2025. It was passed as a “Pay-For” in 2017.
SALT was included in the Tax Cuts and Jobs Act (TCJA) of 2017. The TCJA Tax Law was passed to expire at the end of December 2025. Republicans want to lower Taxes further with “no tax on Social Security, Tips and Overtime. Now Democrats want to eliminate the SALT tax deduction restrictions. This could happen. The “Wealthy” pay 90% of all Tax Revenue anyhow.
https://www.irs.gov/newsroom/tax-benefits-for-homeowners
https://www.irs.gov/publications/p530#en_US_2023_publink10006477
Not many US Citizens buy homes with $1 million loan interest costs. Not many US Citizens pay over $10,000 per year on Property Taxes. Only Millionaires and Billionaires pay these costs when they buy multi-million dollar properties.
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Home ownership is the “American Dream”, because families can accumulate inter-generational wealth as the home values increase. This requires maintaining and improving our homes. Mortgage payments on homes become part of the strategy to increase wealth. The money we pay in Rent is gone. Home Ownership allows us to keep all of the money we spent on mortgage and property tax payments. When we die, we can leave our home to our kids. The exemption on death taxes is $1.3 million. Most estates pay no taxes. If we have 2 children and leave a $1 million estate to them, they pay no inheritance taxes. Their $500,000 inheritance would be used to pay off their mortgage and invest the rest in their ”emergency fund” IRA or 500 Index.
Norb Leahy, Dunwoody GA Tea Party Leader
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