Find Real Estate Agents and Homes for Sale


Real Estate News --> Alaska News

How new tax bill will impact real estate market in South Florida


believes the new law will have a minimal or no impact on the sale of luxury properties and real estate will continue to appreciate at a high single digit rate. Without a broad-based income tax, Florida, Nevada, Alaska, South Dakota, Tennessee, Texas ...


Archived Story

MIAMI - The most wide-ranging reform of the United States' tax laws in more than three decades marginalizes homeownership incentives, but experts say it favors South Florida's real estate market. The new $10,000 cap on property tax deductions was concerning some homeowners who anticipated bigger tax bills even before President Donald Trump cheered the massive overhaul Wednesday.  More GOP Tax Bill Headlines White House, GOP celebrate passing sweeping tax bill 34 things you need to know about the incoming tax law Puerto Rico Governor: GOP tax bill is 'serious setback' for the island Will Obamacare survive the tax bill? Trump hopes momentum from tax bill will get other priorities through Congress Making sense of the new cap on state tax deductions A fractured GOP unified to pass a landmark tax plan: Here's how it came together What the tax bill means for Millennials Tax bill makes nonprofits pay up for millionaire execs What's in the GOP's final tax plan This week there was a wave of homeowners attempting to pre-pay taxes at the tax collector's office in Broward, according to Broward County Property Appraiser Marty KiarBut none of them were able to do so.  "Tax bills will not be issued and open for collection until Nov1, 2018 – any attempt to prepay a 2018 tax bill must be rejected and returned to the sender," said Abbey Ajayi, who works at the tax collector's office in Fort Lauderdale. Congressional Republicans put some tax exemptions on the chopping block to help pay for their new tax breaks, and some experts believe the ones related to real estate will affect those who own, sell and build residential and commercial real estate in South Florida.  Kislak Organization president and CEO Thomas Bartelmo focuses on the ownership, management and brokerage of multifamily and commercial real estate in Florida, Maine, New Jersey, Texas, Oklahoma and Nevada.  "All of these changes apply to single-family homes and generally relate to a fairly high price point," Bartelmo said.  The reform still allows the sellers' capital gains exemption, which excludes the first $500,000 in profits for couples and the first $250,000 for single filers when they have lived at the home for at least two years. The new law makes changes to mortgage interest deductions, which allows homeowners to subtract the interest on their loans on first and second homesInterest paid on home-equity loans won't be deductibleThe deduction will remain at $1 million for first homes purchased before Dec15, but the cap was lowered to $750,000, and it will no longer include second homes. "Basically $250,000 of mortgage will not be deductible to those who have mortgages or combined mortgages of over $750,000, where they did have it up to $1 million," said Miami real estate broker Anthony Askowitz, owner of RE/MAX Advance Realty. "Investors and homeowners lose tax breaksThis is not a tax break." The Congressional Research Service reported Florida was among the 10 least likely states where tax returns claimed the mortgage interest deductionThis cap will likely affect Monroe County where about 11 percent of the mortgages were above $500,000 due to resort destinations, according to The National Low Income Housing Coalition  Mike Pappas, president and CEO of The Keyes Company, believes the new law will have a minimal or no impact on the sale of luxury properties and real estate will continue to appreciate at a high single digit rateWithout a broad-based income tax, Florida, Nevada, Alaska, South Dakota, Tennessee, Texas, Washington, New Hampshire and Wyoming could be at an advantage.  "The cap on tax deductions should accelerate the demographic shift from the northern states with high income taxes to Florida that does not have a state tax," Pappas said. Opponents of the bill feared the new legislation was going to harm low-and-middle income minorities being forced to spend a high percentage of their income on rent. Affordable housing experts view the affordability crisis as a societal problem that is perpetuating a cycle of poverty because renters do not accumulate wealth. In areas like Miami's Brickell and Museum Park, foreign pre-construction flippers buy with cash and put so much pressure on residential real estate values that they have priced out local buyersMiami has a higher percent of cash sales for condos due to lack of financing approvals for buildings, according to the Miami Association of Realtors.  This is why the National Association of Home Builders celebrated the bill's retention of the private activity bonds that enable the federal Low-Income Housing Tax Credit program and in a statement released on Saturday said that in doing so legislators protected more than 788,000 affordable rental units over the next decade.  "The tax reform will have a strong, positive effect in Florida real estate," Pappas said. "The corporate tax cuts should improve the economy and increase employment and wages, which fuels real estate."       

Trending Alaska News:


  • Sign Me Up: These 5 States Have No Sales Tax
  • Real Estate Agents & Brokers
  • John Kilroy Sr., commercial real estate pioneer and champion sailor, dies at 94
  • How will tax overhaul affect Houston economy, real estate market?
  • Alaska Airlines May Dump Virgin’s Burlingame Office Space Following Merger
  • The Hawai'i That Was: Have We Got Some Real Estate for You! Exploring Kaloko-Honokohau National Historical Park
  • Alaska bound - Sun, 29 Apr 2012 PST
  • APNewsBreak: Couple was celebrating anniversary on cruise
  • US judge orders real estate mogul to pay creditors $286M
  • Brandner: Alaska Plastic Surgeon Faces Forfeiture Of $4.656 Million For Undisclosed Offshore Account Used To Attempt ...
  • Anchorage Real Estate & Homes for Sale
  • GOP Tax Bill Rewards Real Estate, Oil While Hurting Hospitals
  • Sometimes Santa needs a lift. This time, to remote Alaska
  • Interfax-Ukraine to host press conference 'Price Wars in Residential Real Estate Market'
  • Long-time CEO of Mental Health Trust Authority resigns
  • Brother: Las Vegas gunman was wealthy real-estate investor
  • THE ALASKA DIVIDEND AND THE PRESIDENTIAL ELECTION (from 2008)
  • Tommy Lowe and Greene Realty Group: A Winning Combination
  • Putnam Investments LLC Takes Position in Douglas Emmett, Inc. (DEI)
  • North Pole Suing Over Groundwater Pollution