David Camp, Chairman of the House Ways and Means Committee released his plan to reform the federal tax system. As this plan is released for discussion before the introduction of a bill, it will probably not be going to vote any time soon. However it is important because parts could be used for future legislation.
This has been in the works for the past two years to find a way to
- Lower top tax rates to 25 percent.
- Not reduce current revenue from the current tax law.
- Keep the progressivity of current system in tax.
The National Association of Realtors have reviewed the plan and found some parts troubling for real estate.
- Increase of the Standard Deduction.
- Repeal of State and Local Tax Deduction.
- Limits the Deductibility of Mortgage Interest.
- Excludes the Gain from the Sale of a Principle Residence
- No Mortgage Debt Forgiveness
- Repeals Rules allowing 1031 Exchanges
- Changes the timelines for Depreciation
- Changes the way we treat Depreciation Recapture.
There are quite a few proposals in the plan that you need to know and understand. Please take the time to read NAR’s review . . click here.