2018 Tax Reform Impact
December 22, 2017 was a landmark day in recent tax history. The federal government passed and President Trump signed into law the largest tax reform in nearly three decades. Among the major changes was the permanent reduction in corporate tax rates to 21%, reduction in personal tax rates, that phase out over 10 years, changes to the AMT, and an up to 20% deduction for personal service corporations on the first $315,000 of income. The single largest change though to affect Californians will be the $10,000 cap on property and state and local income taxes that are paid. As Californians are some of the highest tax individuals, the actual impact of this deduction could result in some Californians paying more in federal taxes. The question that will be answered and what we will be watching intently is what impact does this tax law have on the California economy and in particular the California real estate market.
Source: BPE LAW OFFICES