More Opinion

Column: The tax cut bill and you

Three main concerns of home owners addressed - interest deduction, tax exemption and State and Local Taxes

Today I listened to a webinar to make sure I am current with the new tax changes. What I am going to share with you just speaks to the law and does not address how it will impact your personal tax return. Always speak to a qualified CPA. In addition, I am just speaking to three areas of the tax law. It is very detailed and vast and I am looking at it from a real estate perspective.

1. Mortgage Interest Deduction - There was concern the interest deduction would be eliminated. IT WAS NOT! There was talk the second home deduction would be eliminated. IT WAS NOT (limits apply) There was talk home equity line interest would be eliminated. IT WAS NOT (limitations apply)

The new law reduces deductible mortgage debt to $750,000 dollars for new loans taken out after 12/14/2017 (the old limit was $1,000,000) Current loans up to one million are grandfathered.

Homeowners may refinance mortgage debts existing on 12/14/2017 up to one million and still deduct the interest, so long as the new loan does not exceed the amount financed. 

Repeals deduction for interest paid on home equity debt through 12/31/25

Interest is still deductible on home equity loans if proceeds are used to substantially improve the residence

Interest remains deductible on second homes but subject to the limits. 


There was a concern that the state and local tax deduction (which includes property taxes) would be eliminated. That did not happen.

The final bill allows an itemized deduction of up to $10,000. This includes state and local property taxes and income or sales taxes.


The new code is the same as the old code on this. A typical owner who has lived in their house at least 2 out of 5 years would pay nothing in capital gain taxes if they sell their home.

I hope this helps.



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Intero Real Estate Renee Kunz VP & Managing Officer License:00963855 (reneekunz)

I am the Vice President and Managing Officer of Intero Real Estate Services in Hollister. I was raised in San Benito County and returned to the area with my husband as an adult and we are raising our children here. I have managed the Hollister Office since 2002. We are celebrating our 15th year of business this year. I obtained my broker's license in 1987. I am a third generation Realtor who is passionate about the real estate industry. Follow me on facebook:


Submitted by (Rebecca Salinas) on

Thank you for a concise summary of the supposed and threatening changes to our tax law that I had been hearing over and over again. I will sleep better tonight!

Submitted by (Renee Kunz) on

My pleasure! I am always just a call away!

Submitted by (John) on

Nice summary, thank you. The exclusion on capital gain really confuses me. We lived in our home for about 32 years and sold it at a considerable capital gain. Bought a new home, just under the sale price ofviur old home and got whopped with a huge cap gain, even after our 2 × $250K exclusion. What am I missing here ?

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