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Study: New Federal Tax Law Will Hurt Many Honolulu Homeowners


... Apartment List analysis relied upon 2016 Census data that says the median home value is $658,900 in Hawaii. According to a separate real estate research company, Locations, the median home price on Oahu in February was $770,000. “As homes get even ...


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The loss of some deductions for mortgage and state and local taxes impacts areas with the most expensive real estate. By Anita Hofschneider / March 7, 2018 var addthis_config = addthis_config || {}; var addthis_share = { // ..other options url_transforms : { shorten: { twitter: 'bitly' } }, shorteners : { bitly : {} } }; addthis_config.data_ga_property = 'UA-15921884-1', addthis_config.data_ga_social = true; addthis_config.pubid = 'ra-53bef79866d02ea7'; //console.log(addthis_config); Some Honolulu homeowners will get hit hard by the new tax law signed by President Donald Trump. A study by the real estate company Apartment List found that the median Honolulu homeowner will lose more than $70,000 over a 30-year mortgage due to new limits on how much mortgage interest and state and local taxes they can deductThe median homeowner is expected to lose $3,200 in the first year, making Honolulu the sixth most-impacted metro area in the nation. The Tax Cuts and Jobs Act of 2017 reduces the mortgage interest deduction to borrowing of up to $750,000 for mortgages taken out after Dec14, 2017; caps state and local tax deductions at $10,000; and doubles the standard deduction. That increase in the standard deduction could cancel out the losses from smaller housing deductions, meaning some homeowners might still pay less taxes overallBut researchers from Apartment List said that the changes could deter homeownership. The changes in housing-related tax deductions hurt homeowners in expensive housing marketsThe study found that the five worst-hit cities are in California, where many real estate prices and property tax rates are higher than in HonoluluThe study found the median Bay Area homeowner could lose more than $100,000 over the course of a 30-year mortgage. The areas hurt the most by the changes in housing tax deductions are all in politically left-leaning states that didn’t support TrumpThe president lost badly to Democrat Hillary Clinton in Hawaii, winning less than 30 percent of the vote statewide. The impact on Hawaii homeowners could be even worse than the study suggestsThe Apartment List analysis relied upon 2016 Census data that says the median home value is $658,900 in HawaiiAccording to a separate real estate research company, Locations, the median home price on Oahu in February was $770,000. “As homes get even more expensive, Honolulu homeowners will lose even more in housing tax deductions,” explained Sydney Bennet, a senior research associate at Apartment List, in an email. Click here to read the full study at Apartment List and learn about the methodology. About the Author Anita Hofschneider Anita Hofschneider is a reporter for Civil BeatYou can reach her by email at anita@civilbeat.org or follow her on Twitter at @ahofschneider. Use the RSS feed to subscribe to Anita Hofschneider's posts today Support Nonprofit Journalism in Hawaii SorryThe minimumum donation amount is $5.00 I would like to donate $ One-Time Monthly Yearly Support Us Top Stories Cory Lum/Civil Beat State Plans To Sweep Longtime Homeless Camp At Waianae Boat Harbor Nathan Eagle/Civil Beat House Shaves $35 Million From Governor’s Budget Nick Grube/Civil Beat Hawaii Federal Judge Nomination Offers Glimpse Of Partisan Dealmaking DonkeyHotey via Flickr Neal Milner: There’s Change Afoot In America And We Don’t See It Coming Flickr: Janine When It Comes To School Breakfast, We Can Do Better Suevon Lee/Civil Beat It’s Time To Prepare Our Students For A Future In Computer Science Featured Video Loretta Sheehan’s First Police Commission Meeting As Chair Sign up for our FREE morning newsletter and face each day more informed. Sign Me Up! SorryThat's an invalid e-mail. Thanks! We'll send you a confirmation e-mail shortly. And don't worry, we hate spam too! You can unsubscribe any time. The only news outlet in Hawaii dedicated to public affairs reporting Our mission is to engage and educate the community on important public issues through in-depth reporting, explanatory and investigative journalism, analysis and commentary Best Overall News Site Civil Beat has been named the best overall news site in Hawaii for the 7th year in a row by the Society of Professional Journalists Hawaii Chapter. Member About Civil Beat Member Benefits Contact Us Events Jobs FAQ Got A Tip? Podcasts Privacy Policy Reprint Policy Corporate Donations Terms of Service

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