Real estate groups ready to battle GOP on tax proposals

[DonViejo]

Source: The Boston Globe




By Victoria McGrane GLOBE STAFF NOVEMBER 12, 2017

WASHINGTON — Home builders and real estate agents are ramping up a battle against Republicans in Congress with a simple message: Stop messing with the American dream.

The object of their ire is the House GOP proposal to cap the total eligible loan amount for the IRS mortgage interest deduction at $500,000, down from the current limit of $1 million.

Only about 6 percent of mortgages nationally are larger than $500,000, so in this case it’s the American dream for well-to-do home buyers. But it’s a lucrative and crucial sector of the real estate market in many places, including Massachusetts. About 8 percent of Bay State mortgages are larger than $500,000, according to the National Low Income Housing Coalition. So the industries that thrive on building and selling expensive houses are flexing their lobbying muscle in Washington.

“We’re at DEFCON 2. We’re trying last-ditch diplomacy before declaring all-out war,” said Jerry Howard, chief executive of the National Association of Home Builders, describing his group’s stance on the sweeping tax overhaul bill unveiled by House Republicans last week.

Read more: http://www.bostonglobe.com/news/politics/2017/11/11/real-estate-groups-war-over-gop-plans/EHMawmGkhzezLc8e1tVBiM/story.html

[Lucky Luciano]

1. I would like to see the deduction go up. How long has it been $1m?

In the meantime, I will hold off buying in Manhattan because if this goes into effect it will make a home worth less.

[Mustellus]

2. But as they push wages down....

.. all those houses will be converted into rentals. No need for the mortgage deduction any more.