In the 41 years that I have been practicing real estate, this is the MOST IMPORTANT NEWSLETTER that I have EVER sent because it has information comparing the prior federal tax law with the NEW FEDERAL TAX LAW that will impact your federal income taxes and most likely the value of your principal residence.

              Your tax professional is busy preparing 2017 tax returns and most likely has NOT had an opportunity to study the new tax law in depth.  Therefore I strongly urge you to read the newsletter including the National Association of REALTORS tax summary link, and SHARE and DISCUSS this newsletter and new tax law with your tax professional.

              The new tax law is designed to create jobs in business and investment real estate such as rental properties and provides significant tax breaks.  The new tax law takes away some tax benefits to property owners in high end states such as Hawaii, California, New York and Connecticut.

To answer your IMMEDIATE questions regarding how your personal residence could be impacted, even decline in value, and why you should be investing in rental properties, call me at 808.341.0737.

           The 2017 Tax Cut and Jobs Act passed by Congress and signed by the President continues to treat real estate as a favored investment.


           Whether it is for a home to live in as your principal residence or to use as rental property, the tax laws are in place but other dynamics to be concerned with are not; mortgage rates are expected to rise as well as prices.

Reasons to buy now:

  1. The mortgage interest deduction is intact for most taxpayers.
  2. The capital gain exclusion for principal residences up to $500,000 remains in place.
  3. Taxpayers can elect annually to take newly increased standard deduction or itemize deductions whichever will benefit them the most.
  4. The house payment with taxes and insurance is most likely cheaper than the rent.
  5. Rents will continue to rise making the difference even greater in the future.
  6. Lock-in the principal & interest payment with a fixed-rate mortgage.
  7. 30-year mortgage terms are available to most borrowers.
  8. Prices will likely increase due to lower inventories and several years of low housing starts.
  9. Section 1031 exchanges, capital gains and depreciation remain the same for rental properties.

For a summary of specific real estate provisions in the 2017 Tax Cut and Jobs Act, click here.

Do you or friends have questions about real estate or need to buy or sell? Call or Text 808.341.0737... or Send me an Email ...