NEW YORK CITY—Brad Klatt, a partner at the real estate development firm, Canoe Brook, acknowledges with the tax reform, Americans are still only three feet from the gate. However, he corrected the NY Post headline which read renters were winners under the tax reform. “I don't think that's true. I think the answer is rental owners are the winners in this new tax code,” said Klatt.
For filing federal tax returns, by increasing the standard deductions, capping the combined state, local and property tax deductions to $10,000, and limiting mortgage interest deductions to mortgages up to $750,000, the law reduces incentives for home ownership.
Klatt reviewed underwriting scenarios showing post-tax reform left people with less after-tax cashflow. With reduced buying power, their aspirations for home ownership were also diminished.
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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.
