While the final draft of the Republican tax-code rewrite improves its treatment of housing, the gains are superficial. This is because the standard deduction is being doubled, making itemizing largely irrelevant. And, while state and local income taxes will remain deductible, the deduction is capped at $10,000 including property taxes! Therefore, in areas with high house prices, high property taxes, and high-income taxes, house prices will likely fall by 10%.
Elliot F. Eisenberg, Ph.D.