2017 Nov 22nd

The Proposed Tax Plan is Going to Slam Hoboken, Jersey City, & NJ Real Estate Values!

Screenshot 2017-11-22 12.43.24

 

 

 

 

 

 

 

 

See the really dark green?  Right over New Jersey?  That means we will get hit the hardest in the entire United States should the proposed tax plan go into effect and we are no longer able to deduct mortgage interest and state and local property taxes.  A few people commented to me “well, my property taxes are under $10,000 so it won’t affect me”.  Wrong.  All ships drop on a falling tide.  If the entire real estate market is slammed, your condo or house is worth less, too.  Here is a link to the article in the NY Times.  This one is worth fighting, people!

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  1. Josh

    It would be an absolute disaster for NJ property values – double digit correction for sure. If it happens and the JC reval occurs as described and redistributes the burden based on the 10/1/17 market value, Downtown JC is going to be obliterated. If both occur, I’d be surprised if Downtown JC values weren’t down 20-30% in 2018. South Orange, Maplewood, and Montclair are in the same boat…

  2. Eric

    If the GOP tax plan passes, what do you think would happen to rental prices in Hoboken?

    On a separate note, what percentage of Hoboken/Jersey City apartment owners hire a property management company if the owner decides to rent out their place? Anecdotally, seems like a vast minority hire a property management company to handle renting out their place.

    Thanks to any thoughts on these questions

  3. Joe Federici

    let me repost this here:

    On the issue of exclusions for gains from the sale of principal residences, our Republican friends just released the Senate bill…

    https://www.finance.senate.gov/imo/media/doc/11.20.17%20Tax%20Cuts%20and%20Jobs%20Act.pdf

    Sellers have to be in contract before the end of the calendar year, or else the two year holding period to exclude gains for personal residences is extended to 5 years…

    So, if you owned your condo for less than 5 years, you are selling, and you are not in contract by the end of the year, then you will have to pay taxes on all your gains.

    Wow!

  4. Lori Turoff

    I don’t know about rental prices as most rentals are now in huge, luxury buildings whose owners can afford to tough it out.

    Very few individuals hire a property manager to manage a one-off rental. It’s just too expensive.

  5. Amy

    So how do we fight it?

    Our Senators already are, I assume…

  6. Lori Turoff

    Call, tweet, write, visit, email your representatives.

    https://www.govtrack.us/congress/members/NJ

  7. Eric

    Amy – I think there are a few senators (McCain, Flake, Corker, Collins, etc…) that can kill the senate bill.

    Since calling these republican GOP senators from New Jersey is not going to persuade them, Indivisible put together a tool that allows you to call ‘progressive’ people in these states.

    https://www.trumptaxscam.org/calls-to-kill-the-tax-scam/

    “The calling tool will connect you to a constituent in a target state and give you a script to emphasize the devastating impact of this bill. Then, you’ll ask them to call their Senator on the spot.”

  8. Josh

    And push those who will be impacted who have GOP representatives (particularly Senators) to do the same. Also, urge anyone you know in Alabama to not let a pedophile win the Senate special election. This one is likely to be a squeaker and will be won or lost in the Senate.

  9. Lori Turoff

    From NAR:

    Early Saturday morning, the U.S. Senate, by a vote of 51-49, passed legislation that would change the face of homeownership in this country for decades to come. The House passed its own version of tax reform Nov. 16.

    A last-minute change to the Senate version would make up to $10,000 in property taxes deductible for the small number of homeowners who would still be itemizing. Previously, the Senate version had eliminated the property tax deduction entirely. The change aligns with the property tax cap set in the House bill. One difference between the two bills is that the Senate version retains the deductibility of mortgage interest payments on up to $1 million of indebtedness; the House version caps indebtedness at $500,000 (again, for the small minority still itemizing).

    Now, members of the Senate and the House must meet to agree on a final bill. It’s not too late to make your voice heard. Join us in telling your members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected.

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