That sinking feeling?
A quick read of the new tax bill shows that residents in high tax states like New York, New Jersey and California will lose out next year.
Some of the new tax provisions may even prompt them to pack their bags and move elsewhere. Worse, those who stay behind may find their home values knocked down a peg or two.
Even if their real estate and state income tax bills are sky high, starting next year taxpayers can deduct no more than $10,000 on their federal tax returns, making it much more costly to live in high-tax, high-rent areas.
Here’s something to keep an eye on in 2018: Many real estate experts are predicting that the new tax law will skim some froth from giddy Northern real estate prices.
That double whammy – a higher tax burden and lower real estate values – could provide another push for people to move from high tax states to lower cost locales like North Carolina, Texas and Florida.
Making a move South? Here’s 8 things you must know about retiring to Florida from Kiplinger magazine.
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