Realtors fear Republican tax bill would dampen market for Maine properties

tax bill proposed by House Republicans last week could threaten Maine’s market for vacation properties and strip savings from homeowners who rely on home equity loans.

The tax bill would hit wealthier homeowners by halving a popular mortgage interest deduction for loans of $500,000 or less and for only one residence after Nov. 2, 2017. Currently, homeowners can deduct interest on mortgages of up to $1 million for two residences.

But the bill could affect Mainers across income levels by eliminating the interest deduction on home equity loans, which many residents use for renovations or to fund other expenses.

Combined, the two cuts may potentially lower the number of people buying second homes in the state, experts said.

Maine has the highest percentage in the nation of second-home ownership, with some 19 percent, or 142,967 properties, listed as second homes, according to the U.S. Census.

The Fiddlehead Focus / St. John Valley Times is pleased to feature content from our sister company, Bangor Daily News. To read the rest of “Realtors fear Republican tax bill would dampen market for Maine properties,” an article by contributing  Lori Valigra, please follow this link to the BDN online.

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