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News & Press: Industry News

President Trump's Tax Framework and California Property Taxes

Tuesday, October 17, 2017  
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President Trump’s tax plan for individuals, as introduced, could impact the decisions of potential buyers and sellers of California homes. By eliminating the deductibility of local property taxes, the plan could make Californians less likely to purchase homes. However, California home appreciation and rising rents are two factors that often drive home purchases, regardless of tax considerations.

The plan retains the real estate interest deduction, while at the same time doubling the standard deduction. Doubling the standard deduction may make the real estate interest deduction less important in some areas of the state, but the itemized interest deduction remains important in high-cost housing areas of California.

The President also proposes to repeal the Alternative Minimum Tax under which local taxes lose full deductibility. Thus, Californians who currently lose the benefit of deductibility of local property taxes because of the AMT might not see their overall taxes impacted to a significant extent because they may already not be getting the advantage of the deduction.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851