JOURNAL OF ACCOUNTING AND FINANCE
An Analysis of the Effect of the 2018 Tax Revisions on the Tax Benefit of Home Ownership
Author(s): John B. White
Citation: John B. White, (2018) "An Analysis of the Effect of the 2018 Tax Revisions on the Tax Benefit of Home Ownership", Journal of Accounting and Finance, Vol. 18, ss. 7, pp. 130-147
Article Type: Research paper
Publisher: North American Business Press
Abstract:
One of the benefits of home ownership is the tax deductibility of mortgage interest. When combined with property tax and state income taxes, this sum exceeds the standard deduction, lowering the home owner’s tax liability. The new tax law limits the deductibility of these expenses. The result is a will house provide less of a tax saving in the future than in the immediate past, which translates to higher federal income taxes owed. This study estimates the present value of the increased tax liability. In the scenarios examined, this value ranges from approximately $1000 to nearly $100,000.