FAQ of the New Tax Law & How it Will Impact Real Estate in SC

Posted By AmberHanna Forbes @ Feb 26th 2018 8:15am In: Real Estate News

FAQ of the New Tax Law & How it Will Impact Real Estate in SC

We receive a lot of questions from family, friends and clients regarding the new tax laws and how they will affect real estate in South Carolina, Charleston real estate especially.

We’ve compiled a list of the most Frequently Asked Questions (FAQs) we’ve received, and we’ve tried to answer them as best and as honestly as we can in the videos below.

Please bear in mind, we are only offering our opinions for informational purposes only. We do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for, tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.

Should SC Homeowners be worried about the new tax laws?

We don’t foresee the new tax laws affecting many homeowners in Charleston or South Carolina. The changes on capital gains, mortgage interest deductions, State & Local taxes (SALT), and 1031 exchanges are minimal and shouldn’t have a huge impact on the real estate market in Charleston, SC.

How Do the New Tax Laws Affect Capital Gains in SC?

Capital Gains are essentially profits made from the sale of a property or investment. There were talks of major changes in capital gains which worried a lot of homeowners and investors, but luckily not too many changes were made.

How Will the New Tax Laws Affect Mortgage Interest Deductions?

The mortgage interest deductions are a very popular deduction for homeowners and allow taxpayers to lower their taxable income in the amount of the interest paid on the home. Watch the video to find out why you may not be able to take the Mortgage Interest Deduction if you’re a SC homeowner. The answer may surprise you.

How Have the New Tax Laws Changed State & Local Taxes (SALT)?

South Carolina property taxes are so low the changes in state and local taxes shouldn’t affect a huge percentage of taxpayers; however changes have been made including the state and local tax deduction cap rate so be sure to check out the video.

How do the new tax policies affect a 1031 Exchange?

A 1031 exchange is used amongst real estate investors and investments. It allows taxpayers to sell investment property, invest the proceeds into a new property and avoid or defer capital gains taxes. Again, a lot of talks were made regarding major changes here! Luckily, that wasn’t the case.

Do you think the tax changes will change again?

As with any new systems, tax rates and changes are often revised once they actually start taking effect and the changes can be felt in the country. It will be interesting to see how it all plays out this year!