What’s in the GOP tax bill? An overview
Real estate investors, particularly in the coastal region, have been hoping for a big tax cut.
That’s because the Senate bill will add billions of dollars in deductions for homeowners and businesses, as well as a tax credit for individuals who buy their own homes.
But the real estate industry has also been hoping the bill would lower the tax rate for people making more than $1 million.
So far, the bill has been the opposite.
Here’s what you need to know about the tax cuts that will make your mortgage payments more manageable.
The bill eliminates the deduction for state and local taxes.
The Senate bill removes the deduction, and many economists say it would hurt homeowners and small businesses because many of the deductions would be phased out in 2018.
In 2018, taxpayers would pay only 10 percent of their income on state and state and city taxes, and the House bill would allow households to deduct the state and municipal taxes for state income taxes as well.
The tax cut also would eliminate the deduction on state property taxes for those earning more than the standard deduction.
This would make it easier for most homeowners to keep up with mortgage payments.
The Tax Policy Center, a nonpartisan Washington think tank, estimates that by 2027, the average homeowner would pay $2,100 less in federal income taxes than under current law.
The House bill reduces this figure to $1,700 a year.
The GOP bill would also lower the standard mortgage deduction from $1.25 million to $750,000 for singles, and $1-million for couples.
In 2019, the House version would eliminate all state and regional tax deductions.
The Trump administration estimates that eliminating the deduction would cost $1 trillion over 10 years.
The plan doesn’t increase the child tax credit.
Under the Senate proposal, the child credit would grow at a rate of $1 for each $1 of taxable income, up from $600 in 2018 and $650 in 2019.
Under a House bill, the tax cut would be extended for individuals earning up to $150,000.
This credit is set to grow at the same rate for singles and couples, and at a slower rate for married couples.
This change is intended to encourage families to pay more in taxes, but it also may increase the incentive to get a child.
“For many, the credit will increase their income by about $1 per child and $5 per dependent,” according to a report from the Joint Committee on Taxation, which advises the House Ways and Means Committee.
“In most cases, it would not have an impact on the value of a family’s assets.”
The Joint Committee also found that the Senate plan would increase the federal deficit by $1 in 2027.
This could be a factor in the vote in the House.
The nonpartisan Tax Policy Centre estimated that the bill could cost about $5.2 trillion over the next decade.
The change in the child’s tax credit would be permanent.
The standard deduction and child tax benefit were cut in the Senate.
But in the new House bill the deduction will be permanently extended, and there’s no change in its amount.
The Joint Report, an economic policy research group, estimates the Senate’s plan will cost the federal government about $2.5 trillion in 2018, $3.6 trillion in 2019, and an additional $4.5 billion in 2020.
That would put the bill at roughly $9.7 trillion over a decade.
The legislation repeals the estate tax.
The estate tax is a top tax on estates worth more than more than half a million dollars.
For people who make more than that, the estate taxes are levied on the entirety of their assets, not just the first $3 million.
The Republican plan would repeal the estate and gift taxes, as does the House proposal.
The Estate and Gift Tax Act of 1959 was passed by Congress after World War II.
It repealed the tax, which is levied on assets worth more that $11.5 million for couples and $14 million for single filers.
In its current form, the federal estate tax applies only to estates worth less than $11 million.
It does not apply to estates valued more than three times that amount.
So, for example, if a $25 million estate is valued at $25.3 million, the entire estate would be subject to the estate portion of the tax.
The individual tax cuts will expire in 2026.
Under current law, taxpayers can claim the standard tax deduction of $12,000 in 2019 and the child care credit of $3,000 per child in 2020, and they can claim a maximum of $5,000 of itemized deductions for the year.
This maximum limit will increase to $10,000, but that won’t apply to the standard or the child.
The new House plan will only increase the standard deductions for single taxpayers, and for married taxpayers, the maximum is $12.5.
It will also reduce the standard and child credit for singles in