Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return.This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.
When the tax code was originally being overhauled by the House and the Senate, there were three major proposals being considered that would have substantially impacted the residential real estate market:
- Changing the requirements for the exclusion of gain on the sale of a principal residence
- The reduction on the limit of the Mortgage Interest Deduction (MID)
- The elimination of the State and Local Tax deduction (SALT) which includes property taxes
Let’s look how the tax code has evolved from the original proposal, and decipher what impact experts believe it may have on the housing market.
1. Exclusion of gain on sale of a principal residence
Original Proposal: Owners would need to live in their house for at least 5 out of the last 8 years to claim this exemption. Under the former tax framework, a typical owner, who has lived in their house for at least 2 years out of the last 5 years, would pay nothing in capital gain taxes if they sell the house.
The New Tax Code: No change. The “at least 2 years out of the last 5 years” requirement is unchanged.
Impact on the Market: None.
2. Mortgage Interest Deduction
Original Proposal: Reduce the limit on the mortgage interest deduction (MID) amount from $1,000,000 to $500,000.
The New Tax Code: Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans up to $1 million are grandfathered.
Impact on the Market: Assuming a 20% down payment, this reduction in the MID will impact buyers that are purchasing a home between the prices of $938,000 and $1,250,000. Any home under the lower price is still covered and any home over the higher price was not covered under the former tax code either.
What does that mean to the market? Experts disagree. Calculated Risk’s Bill McBride:
“I think the impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.”
On the other hand, Capital Economics claims:
“The impact on expensive homes could be detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.”
3. State and Local Taxes (SALT)
Original Proposal: The elimination of the state and local tax deduction (which includes property taxes).
The New Tax Code: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes.
Impact on the Market: Most experts agree that higher taxed regions will be impacted as homeowners in those communities now have a cap on these deductions.
Calculated Risk’s Bill McBride stated:
“SALT will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states – especially for the middle and upper-middle class homeowners.”
Mark Zandi of Moody’s Analytics said:
“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”
What will be the overall impact on the housing market?
For most of the country, the new tax code will not have a negative impact on the market. As Capital Economics reports:
“Given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.”
There is also no doubt that some higher priced, higher taxed regions will be affected more than others. However, most experts agree that other portions of the tax code will favor the high-end buyer and seller, and this might mitigate many concerns. McBride explains:
“The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.”
What does this all mean to you?
To know for sure, you should sit with your accountant or financial planner and explore how all the aspects of the new code will impact your family.
Most families consider homeownership an essential part of the American Dream, and don’t purchase a home based solely on the tax advantages. The main reasons they buy a home are personal (they just got married, they are looking for a good place to raise children, they want to be near friends and family, they want to better enjoy their retirement, etc.). This will never change.
Looking at the new tax code, Mr. McBride’s opinion makes the most sense:
“There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.”
For more information, click here for a downloadable pamphlet.
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27799 N 67th Way Scottsdale, AZ 85266
$2,100,000
4
Beds
6
Baths
4,220
SqFt
Status
Active
MLS #
6737500
Property Type
Single Family Residence
Price Type
--
Original owner of this beautiful custom home on a corner lot in prime North Scottsdale is ready for your personal touches. From the gated entry into the private courtyard, you will be surprised to see two additional attached casitas with one bedroom and bath each allowing privacy for family and guests. Enter into the large living room combination dining room with fireplace, wet bar and bar refrigerator. Fabulous kitchen with granite counters, a breakfast bar, two built in ovens and a microwave, gas cooktop and huge refrigerator. The master suite has its own private courtyard, his and hers walk in closets, separate shower with two heads, a jetted soaking tub and two separate vanities. Bedroom 2 has an ensuite bath while Bedrooms 3 and 4 share a full bathroom between them Bedroom 4 is huge and you may consider using this room for a home theatre, family entertainment area, and it is large enough for a pool table or exercise equipment. The laundry room has lots of storage, complete with washer, dryer and a laundry sink..even a built/in ironing board. The two car garage faces the street and the third garage is side entry . So many extras in this home, you really have to see it for yourself and make it your new home.
37 W Sierra Vista Drive Phoenix, AZ 85013
$2,100,000
4
Beds
3.5
Baths
4,173
SqFt
Status
Active
MLS #
6747449
Property Type
Single Family Residence
Price Type
--
Discover the epitome of luxury living in this 4 BR+office custom home, perfectly situated in a tranquil cul-de-sac in the heart of North Central. Spanning 4,173 SF, this residence boasts a gracious and airy layout that flows effortlessly from room to room. The split primary suite features an oversized closet and a spacious bath, creating a serene retreat. The outdoor space is designed for relaxation and entertainment, complete with a pool, in-ground spa, BBQ, and fireplace, making it perfect for year-round enjoyment. A wine cellar adds a touch of sophistication, while high-end finishes and superior craftsmanship are evident in every detail, creating a home of unparalleled quality. Located off the famed Murphy Bridle Path, you'll enjoy easy access to the best that Phoenix has to offer.
10803 W Dove Roost Road Queen Creek, AZ 85144
$2,100,000
3
Beds
2.5
Baths
3,628
SqFt
Status
Active
MLS #
6778740
Property Type
Single Family Residence
Price Type
--
Welcome to your dream oasis located in the gated community of Santo Vallarto in Queen Creek! This home truly has it all! A single-story home with a split floor plan, 3 spacious bedrooms plus a flex room, 2.5 bathrooms, separate formal dining, and an office/den! Enter the home through a beautiful, gated courtyard with a welcoming water feature. Step inside the home through a custom iron door to a beautiful open concept living area. Living room includes a built-in media wall with an electric fireplace. A built-in bar counter space with a sink and wine fridge transitions over to the kitchen that includes an island and eat in kitchen. . The spacious master bedroom has private access to the pool/backyard, huge walk-in closet, separate tub and walk in shower, and double sinks. Enjoy the San Tan Mountain views from your backyard that include an electric heated pool, water feature, hot tub, outdoor kitchen with island and ramada. The artificial turf and lush landscaping are inviting! Relax around the gas firepit or under the extended covered patios. The custom 80 ft length RV garage is complete with spray foam insulation and separate heat pump for AC cooling and heat option. The RV garage also has rear doors, polished flooring, car lift, RV and welding plugs. This custom home has many more features you must see!
21844 N 79th Place Scottsdale, AZ 85255
$2,100,000
4
Beds
2.5
Baths
3,474
SqFt
Status
Active
MLS #
6782928
Property Type
Single Family Residence
Price Type
--
Step into a world of refined elegance with this exquisite french countryside-inspired, single level home. In a quaint gated North Scottsdale neighborhood, the stunning residence offers a truly unique living experience with over a half million dollars in high-end finishes and carefully crafted details. The main living spaces are bathed in light with tall windows and multi-panel glass doors that seamlessly connect the indoors to the outdoors, creating an atmosphere inviting for relaxation and entertaining. The elegant design is complemented by leathered marble countertops in a luxurious chamí gold throughout, providing both beauty and functionality, while the Solstice Contempo limestone floors provide a sophisticated foundation for the space. At the heart of the home is a chef-inspired custom kitchen featuring top of the line Ilve and Miele Appliances, such as a 48 gas range surrounded by a custom venetian plaster hood. The whitewash-stone accent wall brings the perfect amount of texture and earthiness to the space. The cabinets are complete with a sleek, panel-front refrigerator. From the moment you arrive, the private courtyard welcomes you with an air of elegance and charm. A beautifully hand-carved fountain serves as the focal point, creating a serene and inviting atmosphere. The meticulously designed space sets the tone for what awaits in the backyard. The backyard creates a relaxing ambience with picturesque sunset views, featuring a sparkling pool, travertine, lush green grass, fire features and a built in barbecue area. The extended covered patio creates the perfect area to relax at the end of the day or wake up with a hot cup of coffee or tea. This home is truly magical.
11402 E Desert Troon Lane Scottsdale, AZ 85255
$2,100,000
3
Beds
3.5
Baths
4,004
SqFt
Status
Active Under Contract
MLS #
6753600
Property Type
Single Family Residence
Price Type
--
Enjoy breathtaking and unobstructed views of the majestic Troon Mountain, complemented by beautiful vistas of boulder formations and stately saguaros, all from the privacy of this stunning home situated on a premium, elevated corner lot. This tastefully modernized Southwest retreat is a single-level gem with no interior steps, nestled within the prestigious, guard-gated enclave of Boulder Pass at Troon Village. As you step inside, notice the thoughtful artistry and craftsmanship that permeate every corner of this exceptional residence.The heart of this home is the meticulously remodeled kitchen, a true culinary masterpiece where form meets function. Custom-built alder wood cabinetry adorned with glass fronts and unique stainless steel designs offer ample storage options, complemented by a reverse osmosis system, dual Wolf wall ovens, a separate Wolf steam oven, a Wolf gas cooktop, and a Subzero refrigerator. The mosaic glass tile backsplash adds a layer of elegance, enhancing the kitchen's visual appeal. Gaze upon views of Troon Mountain as the kitchen flows seamlessly into the breakfast nook and family room areas, all of which share an authentic, meticulous crafted latilla and beamed ceiling that exudes Southwestern charm. Adjacent to this inviting space, a well-appointed wet bar features Paperstone counters, bar seating, a beverage fridge, and a wine storage area with a custom iron decorative door. Travertine and walnut wood flooring sweep through the home, adding warmth and sophistication. As you enter the home, the formal living room offers a captivating view of the serene back patio, boulders and fountain, while the front entryway and dining room boast exquisite latilla ceilings that glow from the light and views of beautiful sunsets that can be captured through their surrounding windows. This residence offers three luxurious bedrooms, including a primary suite that boasts a spacious sitting area with direct patio access. The primary bath is a spa-like retreat with travertine and granite finishes, dual vanities, a separate shower, and a sumptuous soaking tub. Two additional bedrooms, one ensuite with a walk-in closet and exterior access to the charming entry courtyard, provide comfort and privacy for family and guests. The dedicated office is adorned with double entry doors and offers a refined workspace with peaceful views of the front courtyard, while the laundry room, which is adjacent to the garage, includes a sink and additional refrigeration space. The entry courtyard is a welcoming oasis featuring a gas fire pit, twinkling north city light views, and an elegant paver hardscape. A half-circle drive ensures convenient parking for visitors. The backyard is a tranquil, private paradise designed for relaxation and entertainment, with multiple secluded areas, a boulder waterfall fountain and pond, a built-in barbecue with pull-up bar, a gas kiva fireplace, a commercial-grade misting system, and a sparkling pool area with unobstructed views of Troon Mountain, Tom's Thumb and the McDowell Mountains. Multiple covered spaces provide year-round comfort. Additional features include a three-car side-entry garage with epoxy floors, a freshly recoated flat roof in 2023, a water softener, and newly painted interiors.
30190 N 117th Drive Peoria, AZ 85383
$2,100,000
4
Beds
3.5
Baths
4,200
SqFt
Status
Active
MLS #
6776136
Property Type
Single Family Residence
Price Type
--
Stunning Blackstone Beauty: The Ultimate in Luxury and Comfort: This remarkable Toll Brothers home offers everything you could want, with a location backing onto the scenic Blackstone Golf Course and ample space for all your family and hobbies! Thoughtfully upgraded and enhanced, this property includes a 4-foot extension off the original floorplan, expanding the dining room and primary bedroom suite for extra comfort and elegance. Chef's Dream Kitchen-A true showpiece of the home, is beautifully designed with Wolf appliances, a large center island, and custom cabinetry throughout. This space combines function and beauty, making it perfect for creating memorable meals and hosting family gatherings. Adjacent to the kitchen, an expanded dining area easily accommodates large gatherings while overlooking the warm and inviting Great Room. The Great Room, with its impressive, stacked stone pillars, exudes warmth and comfort. Cozy up by the gas fireplace or step into the adjacent wine room, perfect for hosting additional guests in style. The thoughtfully designed his & hers office, complete with custom cabinetry and enhanced lighting, offers an ideal work-from-home environment. Luxurious Primary Suite - The split floor plan provides a private retreat in the primary suite, which features automated Hunter Douglas blackout blinds and serene views of the backyard. The spacious ensuite bathroom includes three separate vanities for optimal convenience and a large walk-in shower. The walk-in closet boasts custom cabinetry designed for maximum organization and storage. Ideal Guest/Teen Wing & Multi-Generational Guest Quarters includes a den or study space, two sizable guest bedrooms, and a 517-square-foot casita with a separate entrance. Perfect for multi-generational living, this attached guest suite features its own living area, kitchen, steam shower, dual sinks, a king-sized bedroom with a walk-in closet, and a dedicated washer and dryer. Car enthusiasts will love the 4-car tandem garage, equipped with a Whole House water system by H20 Concepts and custom cabinetry. The additional golf cart or cyclist garage is air-conditioned for added convenience, thanks to a separate AC split system. With over $150,000 in outdoor upgrades, the backyard is designed for exceptional entertainment. Enjoy a custom pool with a fire wall, water features, mood lighting, and a pergola-covered BBQ area with plenty of guest seating. Additional highlights include a separate fire pit seating area, travertine stone flooring, and lush artificial turf, all designed to highlight the stunning views of Blackstone Golf Course. The side yard offers a private spa sanctuary, designed as a serene Zen retreat complete with therapeutic jets for ultimate relaxation. Advanced Home Automation - Manage every aspect of this home effortlessly with the Crestron Home Automation System, accessible from your phone or wall-mounted screens. Control the entire home, from temperature and exterior lighting to home security. Easily dim the lights or turn off the TV from the convenience of your phone as you settle in for the night. To ensure you get the most out of the system, the seller will provide a 1-2-hour introductory session with a tech expert. Experience the beauty and luxury of this exceptional Blackstone home in person!
10801 E Happy Valley Road Unit 17 Scottsdale, AZ 85255
$2,100,000
3
Beds
3.5
Baths
4,088
SqFt
Status
Active Under Contract
MLS #
6777045
Property Type
Single Family Residence
Price Type
--
Stunning sunsets, twinkling city lights, flowing green fairways, rugged mountain silhouettes and mature specimen cacti create a spectacular setting for this exceptional custom designed Southwest home. Timeless residence perched on a .71-acre lot overlooking the exclusive Troon Country Club's 17th fairway in the prestigious Glenn Moor community of Troon Village. First time ever available on the market and impeccably maintained by the original owners, offering over 4,000 square feet of single-level living, 3 bedrooms, a den, 4 baths and an oversize 3-car garage. Upon entering the private, gated courtyard, guests are welcomed by lush desert flora, vibrant flowering plants, and a beautifully tended rose garden, setting the tone for the elegance within. The great room, with its lofty 12-foot ceilings adorned with statement solid wood beams and gas fireplace is designed to impress. Thoughtfully crafted art niches and soft puck lighting set the perfect backdrop to showcase your treasured pieces, creating a warm yet sophisticated ambiance. Window wall allows seamless transitions from indoor to outdoor living. Meandering grand patio offers deep covered living areas for grand scale entertaining or intimate enjoyment, cozy fireplace, sprawling sundeck, wrapped around the sparkling pool, spa and waterfall. Alfresco dining at its finest. A culinary dream, the chef's kitchen is equipped with premium appliances, including a Lacanche stove with a warming oven, gas griddle, and burners; Sub-Zero; refrigerated drawers; addition wall ovens; island with second InSinkErator and sink; and walk-in pantry. Ideally located off the kitchen and nook, is an intimate patio with built-in grill and picturesque view of Troon Mountain. The social sunken bar (the ONLY 2 steps in the entire home) with seating provides dramatic mountain views, featuring a convenient set up with a bar refrigerator, sink, and ice machine to ensure you're ready to entertain at a moment's notice. Adjacent to the kitchen, a plentiful wine cooler and the curvilinear formal dining room with courtyard garden views is a perfect setting with ample space for gatherings while effortlessly connecting to the culinary heart of the home. The owner's wing is a tranquil retreat, with personal access to the serene grand patio, pool and spa. The primary bath exudes luxury featuring polished travertine finishes, a spacious walk-in shower, lounge tub, and a dedicated make-up vanity. The custom fitted walk-in closet with fitted with built-in drawers and hampers, includes an additional alcove that is ideal for an exercise room or additional storage, offering a refined blend of convenience and privacy. Everyone is sure to enjoy the dedicated Den featuring custom cabinetry, creating a flexible space for entertainment or relaxation and the two spacious ensuite guest rooms bringing comfort and enjoyment for visitors. Breathtaking city lights and sweeping panoramic views of Troon Mountain, the McDowell Mountain Range, and Pinnacle Peak, visible from both indoor and outdoor living spaces. This home's timeless elegance, quality craftsmanship, superior finishes, exceptional attention to detail and unparalleled views make it a rare gem. The location delivers an ideal backdrop for luxury living in a serene setting while being conveniently situated in the heart of all that Troon has to offer. Reside in the exclusive guard-gated community of Glenn Moor, at 2,500 feet above sea level, hosting the back nine holes of the private Troon Country Club Golf course, it is one of the most sought-after luxury communities in North Scottsdale. Glenn Moor at Troon Village is a guard-gated community with a 24-hour attendant on duty as well as a community clubhouse with a heated pool, bocce ball, tennis courts and nearby walking trails. *Solid block and insulated wall construction. * New Roof 2023 *Note all homes in Glenn Moor have the same street address, so the lot number is how you separate each individual home. This home is lot #17. Address is 10801 E Happy Valley Road, #17, Scottsdale, AZ 85262
3943 E Laurel Street Mesa, AZ 85215
$2,100,000
6
Beds
5
Baths
5,535
SqFt
Status
Active
MLS #
6779025
Property Type
Single Family Residence
Price Type
--
Welcome home to your elegant retreat in Spyglass Estates. This fully updated residence features 6 bedrooms and 5 bathrooms, with beautiful hardwood floors and high-end carpeting throughout. The Chef's kitchen includes a walk-in butler's pantry and offers seamless access to outdoor living. The main level hosts a private primary suite, a second bedroom, large den, and fully equipped guest quarters with a separate entrance. Upstairs, you'll find three additional bedrooms, while the lower level includes a versatile bonus room and a cozy family room ideal for gatherings. Set on over an acre, the outdoor space features a resort-style pool and spa, green space with Citrus trees, along with 5 garage spaces and a sport court. This home combines luxury and practicality.
8320 E Appaloosa Trail Scottsdale, AZ 85258
$2,100,000
4
Beds
3.5
Baths
3,415
SqFt
Status
Active
MLS #
6765538
Property Type
Single Family Residence
Price Type
--
Welcome to your dream home! This stunning, newly remodeled 4-bedroom, 3.5-bathroom plus office offers modern elegance and thoughtful design throughout. Perfect for both entertaining and everyday living, the open-concept layout features spacious living areas, high ceilings, and designer finishes. The gourmet chef's kitchen features sleek countertops, stainless steel appliances, large island, seamlessly flowing into the dining room with a two-way fireplace. The private office provides a quiet space to work or study, and the luxurious primary suite offers a tranquil retreat with a spa-like bathroom and large walk-in closet. Large lot with resort style backyard including a sparkling play pool, sport court, extended patio and an additional ramada. Also includes a RV gate with gated parking perfect for storing recreational vehicles. Located in the sought-after neighborhood McCormick Ranch, 3 C's school district and conveniently located to the best dining and shopping!
38749 N 104th Way Scottsdale, AZ 85262
$2,100,000
3
Beds
3.5
Baths
2,544
SqFt
Status
Active
MLS #
6703948
Property Type
Single Family Residence
Price Type
--
Full Golf Membership available. One of the very few DETACHED Haciendas in the Hacienda Village at Desert Mountain and comes with an extra exterior parking space. This charming home offers a wonderful courtyard entry with fireplace and lush vegetation, the functional great room floor plan has two suites in the main house and a separate Casita. The kitchen has dual Viking ovens, Viking Range and Viking refrigerator, microwave and nice sized island that opens up to the great room - ideal for entertaining. The owner's suite has his and her closets, soaking tub and fireplace. The Hacienda Village has its' own pool, spa, Ramada area with fireplace and exercise room. A wonderful lock and leave home with low maintenance.
25635 N 47th Drive Phoenix, AZ 85083
$2,100,000
6
Beds
4.5
Baths
4,806
SqFt
Status
Active
MLS #
6715717
Property Type
Single Family Residence
Price Type
--
BEST VIEWS IN THE WHOLE WEST VALLEY!!! This is my all time Favorite! This is the most Private ESTATE sitting on top with views of the whole Mountain Range! It takes my breath away!It has everything a property has to offer tucked away in Saddle View Estates with no HOA. It is a Fortress of an Estate. Everything is newer and meticulously kept. Including Owned $80k solar! 2000sf 5 car oversized enormous garage with storage rooms, Newer Roof, Upgraded AC's electronic air filters, Activic Air Scrubbers. New Anderson Windows, new clothes W/D, new kitchen appliances, new whole house filtration, new hot water heaters x2, new toilets, new Pentair water softner, New whole house copper plumbing. New pool pebble Tech surface, filter, pump, propane htr, multi-colored pool light, wireless Pool control The upgraded AC's have electric air filters, and Activek Air Scrubbers, 5yr service plans, new garage Epoxy floors,
3317 E Mcdowell Road Mesa, AZ 85213
$2,100,000
5
Beds
5
Baths
5,670
SqFt
Status
Active
MLS #
6771162
Property Type
Single Family Residence
Price Type
--
GREAT HOME! Ground Floor: 3,938 sq. ft. of livable space, including a master bedroom, an additional bedroom, a beautiful executive wood office, and a large laundry room. Basement: 1,746 sq. ft. of livable space, finished with a game room and theater room combination, plus three bedrooms (one with a private bath and two sharing a Jack & Jill bathroom). ATTACHED Office/Shop: 827 sq. ft. with 1/2 bath, which can be converted into a 4-car garage or a guest room with a 1-car garage. 5 bedrooms and 5 1/2 bathrooms in total. Energy Efficiency: Solar panels are owned, which means lower utility bills. The Spacious Master Bedroom & Bathroom features a Double-Sided Fireplace, A Sitting or Workout Area, 2 Large Walk-In closets a separate Jetted Tub and Seven Head Shower Combination Steam Room The Wood flooring is Acacia, a breed of rosewood. All cabinets Upstairs and downstairs are cherry stained knotty alder. Solid wood doors are Brazilian cedar. 8- foot doors upstairs and standard 6' 8 downstairs. Den is solid natural walnut with desk inlay of Bubinga and Hard Maple. Entry Medallion is Walnut, Cherry, Hard Maple, and Fiddleback Maple. Built-ins in the Master Bedroom, the Master Walk-in Closets, and the Family Room are Cherry. Fireplace Mantel is Solid Cherry. Stair Bannister and Baseboards and Bar are Solid Hickory. Also lots of storage space areas.