It seems that the news these days is dominated by a stream of high-profile and sometimes explosive stories.
Normally, tax reform might not be considered as a candidate on any list of “breaking news” pieces. In fact, many people understandably find the subject dry and, often, muddled in complexity.
Currently, though, tax legislation passed by the U.S. House of Representatives — as well as would-be law favored by a Senate majority — is likely anything but boring and irrelevant for millions of people across the country.
Especially in New Jersey, notes a commentator in a recent piece on Capitol Hill tax reform proposals.
Here is an immediately relevant point regarding New Jersey homeowners: Many tracking sources verify that the state has the most onerous property taxes in the country (here is a link to one representative online site).
As a result, the mortgage deduction currently allowed under federal law is a key tax benefit for legions of New Jersey residents.
The Senate would like to do away with it. In what is termed a “lesser of two evils still being evil,” the proposed House bill seeks to limit the deduction to $10,000 annually.
That latter outcome might not seem to be especially jarring for many homeowners nationally, but New Jersey spells a singular case. State government data stresses that residents in more than 140 New Jersey towns and cities pay in excess of $10,000 annually on their property taxes.
That makes the House proposal “a disaster,” says the aforementioned article’s author.
And, troublingly, its passage might reasonably raise the odds of many new foreclosures in the state, prompted by the sudden absence of a valuable deduction that helps to defray home expenses.
Nothing has been finalized yet, with further congressional debate being required before any final vote or enactment of a bill as law.
The property deduction allowed by the IRS is unquestionably a valuable benefit for millions of Americans. We will be sure to closely track tax reform relevant to it for our readers.
Foreclosure is a serious subject, to be sure, as is any discussion regarding mortgage relief. New Jersey mortgage holders with questions or concerns regarding any aspect of home ownership or challenges posed to it can turn to a proven real estate attorney for candid guidance aimed at securing a best outcome.