Homeowners have been favored beneficiaries of the tax code for a long time. The Tax Cuts and Jobs Act (TCJA) mitigates some previously-enjoyed perks, but still serves to provide an overall tax reduction. An interesting effect of the bill is that is incentivizes renters to continue renting. Under the prior law, it was more financially advantageous to purchase a home once a family exceeded $893 each month in rent. With the passage of the TCJA, that number jumps 14% to $1,017.
See Shaina Mishkin, Everything You Need to Know About How the New Tax Law Affects Your Home, Yahoo! Finance, January 17, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
