The holidays are officially here as SantaCon 2017 takes to the streets on Saturday, beginning around noon at Union Square. Wear a full Santa or elf suit, and bring a toy! Also happening Saturday, the 15th Annual San Francisco Parol Lantern Festival and Parade take place at Yerba Buena Gardens, Jessie Square, and St. Patrick’s Social Hall from 3 – 8 PM. The event is a Filipino holiday tradition — an expression of hope, blessings, luck, peace, and light. The Lower Haight Art Walk runs from 3 -8 PM on Saturday as well.
On the “Homes for Sale in San Francisco” front, here’s our report for this week, 12/3/17 – 12/9/17
The Tax Law Headed Our Way
Tax law is by its very nature complicated, and the tax legislation that made it through the senate over the weekend was 479 pages long. Nothing is final, but the president hopes to sign a $1.5 trillion tax cut package into law by the end of the year.
Things are going to move quickly, so we thought we would present you with a VERY brief snapshot of where things stand as of today — all in just a couple of paragraphs. You’ll really want to talk to your tax consultant about these matters, but here’s what we know:
It appears that under the new plan, mortgage interest would be deductible on loans up to $500,000 instead of the current $1 million for couples filing jointly. Real estate experts believe this could potentially weaken the incentive in high-cost markets where property deals often require large mortgages.
About 7 million homes, including a third of homes in California, would be affected by the mortgage-interest deduction cap if they were put on the market, according to a preliminary analysis by the National Association of Home Builders. The number of households that itemize to take advantage of the housing deduction would drop to less than 11 million from 34 million currently, according to the group.
The plan could also limit home sales in other ways. Under current law, a couple who sells their home is able to exclude up to $500,000 in capital gains from their gross income, as long as they used the home as their principal residence for two of the past five years. Under the new plan, they’d need to use it as their principal residence for five of the past eight years to qualify. Instead of being able to use that exclusion every two years, they’d be able to use it only every five years.
Here are some links to reports that provide more details on how the new tax law may impact you as a homeowner or home buyer. If interested, please click on, or copy and paste, the links that follow:
Forbes Report: http://bit.ly/2ippnLr
Chicago Tribune Report: http://trib.in/2iWWHxh
CNBC Report: http://cnb.cx/2AUWyS0
Mercury News Report #1 http://bayareane.ws/2AZuBoj
Mercury News Report #2: http://bayareane.ws/2AOpdbd