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Real estate industry fears impact of tax bill

(Image courtesy MGN Online)

The National Association of Realtors said Saturday night the newly passed Senate tax bill is bad for business.

That could be of particular concern in Seattle with its exploding real estate market.

“The tax bills that have passed in the House and the Senate are a huge hit to homeownership,” real estate agent and expert Michael Cornell said. “They are a going to damage the middle class, they’re going to make it harder for people to become home owners.”

A major concern is the mortgage interest deduction.

The House bill cut the cap to $500,000 while the senate bill last night put the cap at $ 1 million.

Real estate agents said where the final number ends up will impact home buyers in a big way around here.

But it’s not just the mortgage interest deduction concerning, real estate agents said under the new bill homeowners now have five years before being exempt from capital gains taxes. It has been only two years.

“That’s going to be a huge hit, especially for people who have careers where they have to move every two or three years,” Cornell added.

Washington real estate agents are now pushing lawmakers to make changes before all the tax bill becomes final.

“This fight is not over,” said Cornell. “TheHouse and Senate bills need to go to committee. The committee will work out their differences.”

The National Realtors Association estimates home values stand to fall by an average of more than 10 percent, and even greater in high-cost areas if the bill stays the same.

Here is the full statement from the association:\

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