The Big Beautiful Bill proposes a significant change in the SALT tax deduction, increasing it to $40,000 for Californians. Prior to 2017, this deduction was unlimited, but it was capped at $10,000. The increase is expected to benefit a large number of itemizers earning between $100,000 to $500,000, substantially aiding homeowners and potential buyers. Experts highlight that this adjustment could alleviate some financial burdens related to homeownership, possibly influencing residents' decisions to remain in California due to the increased tax benefits.
"In a place like the Bay Area, where you have a disproportionate number of people who are itemizers and who are earning a lot of money but aren't earning a lot a lot of money - so under 500K but over 100 or 200K - in order for them to not be taking a standard deduction, this amount of money could be substantial," said Darien Shanske, professor of law at UC Davis.
"There's a lot of layers in the cake that go into financing a home purchase or even homeownership, and making a change that makes one of those layers a little easier to digest - it could be a gamechanger both for current homeowners and for individuals considering home ownership," said David Stark with the Bay East Association of Realtors.
"People in California are going to be among the major beneficiaries in the U.S. both because there are a lot of us in California, there are a lot of affluent people in California and we have high taxes in California," said Alan Auerbach, professor of Economics at UC Berkeley.
Collection
[
|
...
]