There has been a lot of panic and turmoil over the new Tax reform bill, but how is the final version presented Friday, the 15th really going to affect the quite mountain real estate owners of Asheville, NC? Here are some highlights:
- Low-Income Housing Tax Credit - Highly important for the large number of Low Income Houses turned rental in Asheville, this was repealed in the house bill, yet the new bill seems to retain this credit. Good News.
- Historic Tax Credit - This too was originally done away with and reconsidered for the final version. This is excellent news for folks who have made a living out of renovating homes in Montford and other historic housing districts. However, because the corporate tax rate is dropping from 35% to 21%, the overall funds available for both tax credit programs will be drastically reduced.
- Mortgage Interest Deduction - Although the initial version dropped this for all houses under $500k, the final version has set the bar at $750k. This is good news for our mountain town where the median asking price last year was $380k and the median selling price was only $240k. Of course this is not good news for the folks in the higher end communities like Biltmore Park.
- Standard Deduction - New standard deductions nearly double with $12k for individuals and $24k for couples. This is great news for the traditionally employed.
All things considered, the super rich continue to widen the gap between them and the working class. However, for our quiet mountain town, things could have been far worse. If you have any questions on the new bill, or you want to buy or sell a home in Western North Carolina, give us a call at (828) 707-5642. We will be happy to help.