What to know about the new tax bill limits in 2018

The GOP finally pushed through its tax package, and the reaction has been interesting to say the least. While some seem to love it (The Wall Street Journal said the bill is the best thing to ever happen to our economy), many others hate it. Regardless of how you feel about the bill, it is signed in now and it’s time to see how it affects you, as a homeowner, seller or buyer.
My friend Jay Vorhees at JVM Lending put together a blog detailing some main points about the GOP tax bill and how it may affect real estate. Here are the main thoughts:
1. Current homeowners will be grandfathered in and still allowed to deduct interest against $1 million of mortgage debt. In 2018, buyers will be limited to $750,000 and interest against home equity lines will not be deductible.
2. State and local tax deductions will be capped at $10,000. This will be difficult for people in California.
3. Standard deductions are doubling to $12,000 for single filers and to $24,000 for married filers, so many homeowners won’t have to deduct their interest and property taxes anymore.
4. We have no idea what exactly the bill will do for the market when all is said and done, but for now, we can expect the low-inventory, high-demand market to suffer in high-end areas down the road, while remaining neutral in the short term.
5. To fully understand the bill’s impact on you, see a CPA. Defer your commissions. And if you’re planning an out-of-state move, consider relocating to a low-tax state like Florida, Texas or Nevada.
I’d like to expand on #5 quickly – as Jay mentioned, there will be a new $10,000 cap on tax deductions starting in 2018. If you paid off your property taxes before January, you should be able to save thousands of dollars on that by avoiding the new rule for a year. And if you are planning a move out of the Bay Area to another part of California or another state, you should be consulting a realtor or a CPA to see what kind of savings you can get!

Road Trips: Scenic Drives in Northern CA

Nothing can top the beauty of Northern California. From the ocean, to the mountains, to lakes, rivers and cities, the Bay Area is one of the most breathtaking places in the world.

California Redwood Road Trip

We have officially kicked off the summer season, the rain has stopped and given NorCals mild summer weather, it’s a perfect place to explore, especially during these upcoming months. I’m a big fan of road trips – there’s nothing like hopping in the car, rolling the windows down and going for a drive on a warm summer day.

With that in mind, I found a great article on OnlyInYourState.com listing 11 great scenic drives in Northern California. I’ll list a few of my favorites out below for reference, but take a look at the full list, and then take a trip!

1. Volcanic Legacy Scenic Byway – Lassen National Park

2. Yuba Donner Scenic Byway – Tahoe National Forest

3. Emigrant Trail – Tahoe/Donner Area

4. Route 101 Redwood Highway – Del Norte Redwoods State Park

5. Carson Pass – CA/NV Border

Happy Trails and have a great summer!