I’m not generally one to discuss hypotheticals, but seeing how so many customers and agents are deeply concerned about the potential impact of the $1.5 trillion in proposed tax cuts, here are my thoughts.
First of all, in my 25 years of selling real estate, nothing good has ever come of knee jerk reactions, particularly regarding that which hasn’t happened yet. Emotions have been running high for most since last year’s elections. Removing emotion from any decision making process and carefully analyzing one’s hypothetical gain or loss is key. It is advisable to speak with your accountant who understands your current tax situation and who can thoroughly explain the possible ramifications on you should this tax plan become our reality (I’m betting it won’t).
Here are the 4 parts of the bill that would have the greatest impact on homeowners in New York City:
State and Local Income Tax Deduction (SALT): There is no doubt this will have the most impact on homeowners in the highly taxed New York City housing market. The personal income tax is the largest generator of revenue for the state of New York. This may result in some of the state’s wealthiest considering a New Yexit. That said, I have only heard mumblings by very few New York City homeowners who are considering a move to a state with no state income tax like Florida and most of them don’t plan on selling their property in New York City. Most of our residents are in no position or just don’t wish to uproot their families and leave our great city.