New tax bill could have implications on homeowners

(WWLP) – The Secretary of the Commonwealth, William Galvin, said the bill does away with certain deductions, and puts a cap on others, and could particularly affect people already paying high property taxes.

The new tax re-write places $10,000 cap on deductions for state income tax combined with property taxes.

Homeowners will still be able to deduct their mortgage interest, but only on value up to $750,000.

Jose Adasdra told 22News, “It’ll affect people who already own property, and people in the lower class who can’t deduct anything, and depend on their deductions to get money back”.

Some interest will not be deductible. The new tax code eliminates deductions for interest on Home Equity Lines of Credit.

Secretary Galvin said that could discourage homeowners from making improvements to their property.

Holly Remillard hopes the new tax bill doesn’t discourage home improvement attempts, she told 22News, “I hope not. I hope people still continue to make improvements. I would hate to see people’s housing go into disrepair because of a negative feeling towards that.”

Businesses will not have a cap on deductions of their state taxes under the new bill. Once the House and Senate pass the tax reform bill, President Trump hopes to sign it before Christmas.