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WHAT THE NEW TAX BILL MEANS FOR REAL ESTATE IN TEXAS

**Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return.**

*This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.*

When the tax code was originally being overhauled by the House and the Senate, there were three major proposals being considered that would have substantially impacted the residential real estate market:

* Changing the requirements for the exclusion of gain on the sale of a principal residence
* The reduction on the limit of the Mortgage Interest Deduction (MID)
* The elimination of the State and Local Tax deduction (SALT) which includes property taxes

Let’s look how the tax code has evolved from the original proposal, and decipher what impact experts believe it may have on the housing market.
1. EXCLUSION OF GAIN ON SALE OF A PRINCIPAL RESIDENCE ORIGINAL PROPOSAL: Owners would need to live in their house for at least
5 out of the last 8 years to claim this exemption. Under the former tax framework, a typical owner, who has lived in their house for at least 2 years out of the last 5 years, would pay nothing in capital gain taxes if they sell the house.

THE NEW TAX CODE: No change. The “at least 2 years out of the last 5 years” requirement is unchanged.
IMPACT ON THE MARKET: None.

2. MORTGAGE INTEREST DEDUCTION ORIGINAL PROPOSAL: Reduce the limit on the mortgage interest deduction (MID) amount from $1,000,000 to $500,000.

THE NEW TAX CODE: Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans up to $1 million are grandfathered.

IMPACT ON THE MARKET: Assuming a 20% down payment, this reduction in the MID will impact buyers that are purchasing a home between the prices of $938,000 and $1,250,000. Any home under the lower price is still covered and any home over the higher price was not covered under the former tax code either.

What does that mean to the market? Experts disagree. Calculated Risk’s Bill McBride: “I think the impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.” On the other hand, Capital Economics claims: “The impact on expensive homes could be detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.”

3. STATE AND LOCAL TAXES (SALT)

ORIGINAL PROPOSAL: The elimination of the state and local tax deduction (which includes property taxes).

THE NEW TAX CODE: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes.

IMPACT ON THE MARKET: Most experts agree that higher taxed regions will be impacted as homeowners in those communities now have a cap on these deductions.

Calculated Risk’s Bill McBride stated: “SALT will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states – especially for the middle and upper-middle class homeowners.”

Mark Zandi of Moody’s Analytics said:
“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

WHAT WILL BE THE OVERALL IMPACT ON THE HOUSING MARKET?

For most of the country, the new tax code will not have a negative impact on the market. As Capital Economics_reports:
“Given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.”

There is also no doubt that some higher priced, higher taxed regions will be affected more than others. However, most experts agree that other portions of the tax code will favor the high-end buyer and seller, and this might mitigate many concerns. McBride explains:
“The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.”

WHAT DOES THIS ALL MEAN TO YOU?

To know for sure, you should sit with your accountant or financial planner and explore how all the aspects of the new code will impact your family.
Most families consider home ownership an essential part of the American Dream, and don’t purchase a home based solely on the tax advantages. The main reasons they buy a home are personal (they just got married, they are looking for a good place to raise children, they want to be near friends and family, they want to better enjoy their retirement, etc.).
This will never change.
Looking at the new tax code, Mr. McBride’s opinion makes the most sense: “There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.”

Please call our team with any questions!!

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Outside Dallas, a Castle-Style Home Brings A Bit of France to Texas- Listed by Becky Frey

We love seeing our beautiful Dilbeck on Masionglobal.com!

https://www.mansionglobal.com/articles/72892-outside-dallas-a-castle-style-home-brings-a-bit-of-france-to-texas

 

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The Becky Frey Real Estate Group = Global Exposure

Rule #1: Always have an agent that is networking for you and your home!

Becky Frey is part of an elite group of Sotheby’s agents asked to be part of a group of Global partners that get to attend and network at an annual Market Leaders’ Forum. Becky is always networking with agents around the country to make sure her listings are being shown to the best of the best!

Check out this amazing video that Bill Fandel and Suzanne Perkins unveiled at the 2017 Global Networking Event in Las Vegas, produced by Elevated Horizon– it shows you a little insight into what her networking group is all about:

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Beautiful Dilbeck Listed by Becky Frey

Thanks Neighborhoods.com, 4144 Shenandoah is such a special Dilbeck. Call Becky Frey to see this beautiful home!

#sellwithBecky #buywithBecky #TheBeckyFreyGroup

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Aspire Magazine

Check our Becky Frey in Aspire Magazine this month!

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ONE LOCAL FIRM, FOUR OF AMERICA’S TOP AGENTS | REAL TRENDS THE THOUSAND

The Thousand is annually ranked by REAL Trends and advertised in The Wall Street Journal. Photo / REAL Trends 

In the June 23 issue of The Wall Street Journal, REAL Trends named four Briggs Freeman Sotheby’s International Realty agents to The Thousand, its annual ranking of the top 1,000 real-estate professionals and teams in the United States. Across Dallas and Fort Worth, these expert agents are the best in the business.

Not only are Briggs Freeman Sotheby’s International Realty’s Becky Frey, Tom Hughes and Michelle Wood on the new ranking of the top 250 individuals by volume, they rank as the top three agents, respectively, in all of Dallas. The firm’s Fort Worth–based John Zimmerman made two lists: the top 250 individuals by volume and the top 250 individuals by transaction sides. In the rankings, Zimmerman is the No. 1 Fort Worth–based agent in the country and the No. 2 agent in all of Texas — and in the top .001 percent of agents in the entire U.S.

REAL Trends, founded in 1987, is the leader in ranking the performance of residential real-estate services firms, agents and teams in the U.S. The REAL Trends ranking considers data, verified by independent sources, for more than 1,000 brokerages.

“I know how talented and dedicated our agents are,” says Robbie Briggs, president and CEO of Briggs Freeman Sotheby’s International Realty, “but it’s nice to see an outside party recognize how solid our relationships are between our agents and our buyers and sellers.”

To John, Becky, Tom and Michelle: Congratulations! You are achieving the extraordinary. 

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Becky Frey has been chosen to be a part of the Sotheby’s Market Leaders Group

Santa Barbara Market Leader’s Forum Provides National Real Estate Insight: View the top 45 Sotheby’s International Realty Agents in the US.

Santa Barbara, California –

The Belmond El Encanto Hotel was home this past weekend for 45 of the top Sotheby’s International Realty agents from across the U.S. who gathered here for the Market Leaders’ Forum, a two-day event focused on best practices, collaboration & strategic growth within the global real estate space.
The intensive meetings and networking events were co-hosted by Montecito’s own, Suzanne Perkins and Bill Fandel of Telluride Sotheby’s International Realty, and proved the perfect opportunity to showcase the beauty, history & culture of the Santa Barbara & Montecito Coast.
Those in attendance represented luxury markets throughout California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Massachusetts, Nevada, New York, Texas, Washington, and Washington, D.C.

The dynamic symposium was moderated by Liz Bentley, President of Liz Bentley Associates, a nationally recognized performance consultant and coach.
The two-day retreat began with an intimate cocktail reception and opening night dinner on the Channel Islands Terrace on the top floor of the El Encanto Hotel.
The following day, a full agenda of meetings and breakout sessions concluded with a reception and estate tour at one of Suzanne Perkins’ exceptional listings located at 815 Cima Del Mundo, currently offered at $29 million. After sunset, the group transitioned by coach to a fabulous dinner under the stars at The Stonehouse Restaurant’s Wine Cellar Terrace, set within the magical grounds of San Ysidro Ranch.

The Forum’s final day concluded with a private estate tour of the historic Villa Santa Barbara, owned by beloved television host, bestselling author, and Emmy–winning actress, Ellen DeGeneres and her wife, Australian-American actress Portia de Rossi. The exquisite estate is listed by Perkins for $45 million.

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