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House Passes Tax Bill

Dec 19, 2017

The House of Representatives voted 227-203 to pass the Tax Cuts and Jobs Act. Twelve Republicans voted against the bill and no Democrats voted in its favor.
 
Under the provisions of the bill. Homeowners will be able to take a mortgage interest deduction on a loan of up to $750,000. This provision, which takes effect in 2018, replaces the current $1 million limit and will be in effect through 2025. However, homeowners will no longer be able to deduct the interest on home equity loans. The bill also cap the deduction for state and local taxes at $10,000 starting next year.
 
The Senate is expected to vote on the bill tomorrow. President Trump had urged Congress to pass the bill prior to the Christmas holiday recess. 
 

Shortly after the House vote concluded, Mortgage Bankers Association President and CEO David H. Stevens praised the bill's passage.
 
“We are grateful for the amendment to Section 13221 of the original Senate-passed bill offered by Senator Mike Rounds, to create an exception for any item of gross income in connection to a mortgage servicing contract," he said. "Additionally, we are glad to see the bill preserves current law by allowing homeowners to exclude up to $500,000 of the gain on the sale of a home. MBA also appreciates the inclusion of the Low-Income Housing Tax Credit (LIHTC) and the tax-exempt status for private activity bonds (PABs). We also are very pleased that the bill preserves business interest deductibility for real estate, as well as Section 1031 like-kind exchanges for real property. Finally, we are glad the bill preserved the option of deductibility of up to $10,000 in property taxes."
 

 
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Dec 19, 2017
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