NEW YORK CITY—New Yorkers will take a financial hit resulting from the Tax Cuts and Jobs Act that President Donald Trump signed into law on December 22.
The new law caps state and local tax deductions for federal tax returns at $10,000. In addition, current deductions on federal returns for interest on mortgages up to $1,000,000 for individuals or $500,000 for married couples filing separately will change. Current mortgage interest deductions will not be affected but people taking out new mortgages will now only be able to deduct interest on mortgages of up to $750,000, or $375,000 for married taxpayer filing separately.
Hugh Kelly, Ph.D. in CRE, special advisor to Fordham University Real Estate Institute, points out that the federal government spends in states outside of New York on projects that boost local economies. This includes roads, military bases, and maintenance for air travel. The funding come from the excess of taxes paid by the higher income generating states, including New York.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
