Tax Reform and Resort Communities: Why the Housing Market Isn’t About to Crash
By now we’ve all read the predictions about the big declines coming to many housing markets in 2018 as a result of the recently passed tax reform bill. The tax bill caps the deduction of state and local taxes (including property taxes) at $10,000 per year, eliminates the deductibility of interest on second homes, and caps the deductibility of interest on new mortgages greater than $750,000, while at the same time raising the standard deduction for a married couple from $12,000 to $24,000. The general consensus is that the increase in the standard deduction is