• Further possible adjusting of the mortgage interest deduction, left alone for now in the Senate plan. Coupled with a cap on the deduction for local property taxes, this could put pressure on home prices in areas of expensive real estate like Southern California and New York City.
If tax brackets do come down and the AMT disappears, acceleration of deductions becomes smarter than ever for HNW clients. “In the worst case, you’re not in any different situation if no tax laws change. And if brackets do come down, you’re in better shape,” Eisenberg said. “Make sure HNW clients touch base with their CPAs and tax attorneys to get a better understanding as soon as we do have a law – and time to digest it.”