While President Donald Trump celebrated the passing of his tax reform package, a deal that slashes tax rates for corporations and reorganizes the individual tax code, homeowners in the Bay Area were expressing concern over how it will impact them.
Supporters of the bill say it will create more jobs and put more money in the average earner's pocket. But many homeowners in California will lose valuable deductions. The deal puts a $10,000 cap on state and property tax deductions in 2018.
Bay area real estate agent Paula Pagano says homeowners count on property tax deductions.
"It's hurting us, especially in California, where prices are higher," she said. "So your talking 16,000 with bonds for property taxes; you can only deduct 10,000."
Pagano says the change will scare some buyers out of the market.
Santa Clara County Supervisor Cindy Chavez says she is hearing from concerned residents and says homeowners should consider paying the second installment of their 2017 property tax bill before the end of the year to get the full deduction.
"Some people are starting to ask questions about what the impact will be," Chavez said. "If they are paying $10,000 or more in property taxes and can pay before the end of 2017, and they're going to itemize, this may be an opportunity to still get a deduction this year."
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Chavez is urging homeowners to ask a professional for help navigating the new tax rules.
