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Here's what the Senate Republicans' tax plan means if you're making $25,000, $75,000, or $175,000 a year.

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Written by: Lauren Lyons Cole November 29, 2017


Senate Republicans and House Republicans have introduced separate tax reform plans. The Senate tax plan differs in significant ways from the version passed in the House.In the chart below, we ran the numbers to see how the Senate's tax plan would affect a single taxpayer, compared to current law and the House's tax plan. Senate Republicans are racing ahead with their version of the Tax Cuts and Jobs Act. Currently, there are two different Republican tax reform proposals. The first version was introduced and passed by the House. Senate Republicans have laid out their own proposal, and on Tuesday the Senate Budget Committee voted to bring it to the full Senate for a possible vote. The two tax plans will have to be reconciled into one before tax reform can be signed into law by President Donald Trump. We previously calculated how much a single, childless taxpayer who claims the standard deduction might save on taxes in 2018 under the…

Who Owns a Half Million-Dollar Home? If You Have Been On The Fence About Moving ........

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Posted in Economic UpdatesInteractiveMortgage Interest DeductionTax ReformTaxes, by  on November 13, 2017


After the release of the tax reform legislation from the House, last week’s question was “who will be affected by the new bill?” One of the key elements of the tax reform is the proposed capping of the mortgage interest deduction at $500K. Under the current tax framework, taxpayers who own a home are able to reduce their taxable income by the amount of interest paid on the loan, which is secured by their principal residence. Interest is deductible on only the first $1 million of debt used for acquiring, constructing, or substantially improving the residence ($500,000 for single individuals if filing separately), or the first $100,000 of home equity debt regardless of the purpose or use of the loan.  The new tax reform legislation allows homeowners to take the deduction on their first $500,000 of mortgage debt, half of the current threshol…

10 Years After the Crash, the Boom Times Are Back in Real Estate—but Way Different

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By  | Nov 13, 2017


As anniversaries go, it's a nerve-racking but inescapable one: It's been 10 long years since the widespread real estate crash that precipitated the Great Recession, and all the misery that followed in its wake. So it seems like the perfect time to take a giant step back, peruse and analyze all of the data, and assess what has really happened to the American housing market in the decade since. So where are we, really? Ever-steeper home prices: check. Buyers clamoring to get into those precious homes: check. Real estate newbies scooping up homes to renovate quickly and sell for a profit (i.e., flip): check. On first or second glance, things are looking awfully similar to the real estate boom that preceded the epic bust. But wait: There's no need to start stuffing your life savings under your mattress for safekeeping just yet. If you look beneath the surface, there are key differences between then and now, a realtor.com® analysis of housing …

2018 California Housing Market Forecast - The California median home price is forecast to ....

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C.A.R. releases its 2018 California Housing Market Forecast


LOS ANGELES (Oct. 12) – With the economy expected to continue growing, housing demand should remain strong and incrementally boost California's housing market in 2018, though a shortage of available homes for sale and affordability constraints will be a challenge, according to the "2018 California Housing Market Forecast," released today by the CALIFORNIA ASSOCIATION OF REALTORS®' (C.A.R.) .   The C.A.R. forecast sees a modest gain in existing single-family home sales of 1.0 percent next year to reach 426,200 units, up slightly from the projected 2017 sales figure of 421,900. The 2017 figure is 1.3 percent higher compared with the 416,700 pace of homes sold in 2016.  "Solid job growth and favorable interest rates will drive a strong demand for housing next year," said C.A.R. President Geoff McIntosh. "However, a persistent shortage of homes for sale and increasing home prices will dictate the …

What's in the tax bill? If you live in California, you better take a look at this.

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"Today is the day. We are introducing legislation that will cut your taxes & make the entire system more simple. This will be a game-changer," Speaker Paul Ryan, R-Wis., said on Twitter. Really! All nonsense. Please take the time to understand that it certainly will not make the system more simple; but more importantly, it is not going to be a tax cut for most families with dual incomes. Don't get sold on what sounds good but really is meaningless. For example, doubling of the standard deduction. Sounds great until you understand that they are taking away the personal exemption. Today you're allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. The House bill eliminates that option. So for a married couple with two children, don't start celebrating that your standard deduction just doubled from $12,000 to $24,000, because you just lost the personal exemptions of 4 x $4,050 = $16,200
If you live in California like I …