Guestpert : Toni Patillo
Category : Real Estate
Tags : Tax, Mortgage, Tax Plan, Tax Reform Bill, Incentive, Money
Ms. Patillo is the Principal and Broker for Toni Patillo & Assoc.’s, a Residential & Commercial Real Estate Company whose expertise is in the liquidation of properties for people who are selling due to particular circumstances. Leading her own sales team, in standard sales and purchases, Toni Patillo & Associates has a specific niche in Senior Transition sales, Probate, Trust sales, Bankruptcy, Divorce, Short Sales, and Pre-Foreclosure liquidations.
“2018 Tax Reform Bill” – “Killing Off the American Dream”, “Throwing Punches that Literally Tanks Home ownership Incentives”, this “Bill” De-Incentivizes Home Sales, Discourages Home Buyers and Threatens Boomers, Older Adults and Seniors regarding their overall outlook on Retirement, anticipated Declining Home Values and the thought that their nest eggs if any may be at risk.”
As a 17-year, veteran Real Estate Broker based in Santa Monica, CA, specializing with homeowners that must sell due to specific circumstances and as a Senior Real Estate Specialist working to support the 50+ market; boomers, Older Adults, Seniors, and their families. Toni Patillo has witnessed, consulted, and supported hundreds of hardship cases over the past 11 years with her clients, peers, business associates, family, and friends. One of Toni’s expertise is Crisis Management working with homeowners and others who are dealing with circumstances that have landed either unexpectedly, or those that could see hardship heading their way with obvious signs of a bumpy road ahead.
The Congressional “Tax Reform” bill includes a variety of changes that could make homeownership a more expensive proposition for many taxpayers. Here are just a few:
It caps the mortgage interest deduction to the interest only on a mortgage principle of no more than $750,000
Interest paid on Home-Equity Loans will no longer be deductible beginning January 2018.
Other things affected by the Bill:
State and local tax deductions (SALT) will be capped at $10,000 per year. This would include either property tax income. or a combination of both.
Capital gains exclusion- Taxpayers will continue to be able to exclude up to $500k ($250k for single filers) from capital gains as long as they’ve lived in the house for five of the past eight years.
How does the Tax Plan affect Senior Citizens?
Medical Deduction (this is the most significant loss-but this will remain)
Moving Expenses are Eliminated
Tax Preparation Fees are Eliminated
Theft and Loss are Eliminated
Health care premiums to surge resulting from the Bill
Proposed spending cuts would potentially affect Medicare and have a major impact on patient access to health care
Tax Bracket will be simpler and reduced to 3 brackets.
Tax Deduction will be raised $12,000 per year but it will scrap personal exemptions of $4,050 and $1,250 for seniors over the age of 65.
GOP Tax Proposal will have a Huge Negative Impact on Affordable Housing
Source: Kathy Murphy of BayAreaNewsGroup.com and Mercury News
May potentially loose $2.2 billion annually for affordable housing construction in California
California heavily relies upon federal tax breaks to finance affordable housing projects.
This would curtail California’s efforts to help those who have been hardest hit by the housing crisis: seniors, and poor and disabled people.
How the GOP Tax Plan will affect California Home Prices?
Source: National Association of Realtors
The proposed real estate-focused tax deductions could cause prices to drop between 8 and 12 percent
People will be reluctant to sell for two reasons: 1) uncertainty, 2) fear
People will be reluctant to buy in California for two reasons: 1) too expensive and 2) reduced tax credits
Senate Tax Reform bill is direct attack on homeownership in California, says C.A.R……………….
This will disproportionately affect Californians because of our higher housing costs and property taxes C.A.R. says……………………….
For many years the American Dream has been all about Homeownership, Saving on Taxes, and Building Wealth for their families. It’s important to know and be present to the fact “That Everything is Subject to Change”. We must empower our communities to stay strong, calm, engaged and positive through these turbulence’s? We will get through this, but we will have to work together standing strong on our values. It’s very important to not REACT! Instead RESPOND!
The overall impact of the entire Tax Reform Bill is complex and affects billions of Americans –
As a country we should all be concerned about how we will support the 50+ market, the boomers, seniors, and their families: this is a large segment of our population and Health Care Costs, Medicare, Social Security, Affordable Housing Act will be hugely affected by the Bill and could potentially cripple our economy and the American Dream.