Tax Plan Means Your Nevada Home Is Worth $28K Less: Realtors

NEVADA -- Nevada homeowners could see their property values decline by up to $28,000 if the tax reform plan approved by the Senate is adopted, said the National Association of Realtors last week.

The Senate passed its version of the Tax Cuts and Jobs Security Act early Saturday morning by a 41-49 vote. The bill has received backlash from various organizations, including the largest real estate trade association in the U.S.

The bill removes the tax deduction for interest paid on home equity debt and increases the standard deduction for all income, ultimately removing incentives for people to buy homes.

"The tax incentives to own a home are baked into the overall value of homes in every state and territory across the country," said Elizabeth Mendenhall, president of the National Association of Realtors. "When those incentives are nullified in the way this bill provides, our estimates show that home values stand to fall by an average of more than 10 percent, and even greater in high-cost areas."

Home prices are expected to fall from 8 percent to 12 percent under the tax plan. The projected loss in home value would range from $18,620 to $27,950 for the typical Nevada homeowner, according to the National Association of Realtors.

"While there are some winners in this legislation, millions of middle-class homeowners would see very limited benefits, and many will even see a tax increase," Mendenall said. "That's a poor foot to put forward, but this isn't the end of the road."

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