Who ever said, "Hey! I love taxes, let's just complicate it even more!" ? On December 20, 2017 the House of Representatives passed the Tax Cuts and Jobs Act of 2017*, which was the final vote in Congress.

Decrease in Income Taxes:

There are now 7 adjusted income tax brackets, all of which have been lowered except for those who make $400,000 - $600,000 a year. They’ll be paying paying more! KMR, LLP is a a boutique CPA firm that does a great deal of work in all aspects of real estate, check out their The Tax Cuts and Jobs Act of 2017 Breakdown.

Residential Property Deductions and Taxes:

The final Tax Cut Law of 2017 has decreased the mortgage interest deduction threshold from $1M to $750k. This means properties under $1M in NYC will be even more in demand, and the luxury residential market may be hurting in years to come. In Manhattan, where the median apartment sales price is $1.17 million*, the change would make it harder for people to buy homes, which would cut into demand, hurting sellers and developers.

If your own and use your property for at least 2 out of the 5 years, and decide to sell on the 5th year, the money you will make on appreciated property value is a capital gain. You will not have to pay Capital Gains Tax, a type of income tax, on the money made on your resale.

Commercial Property Depreciation Benefits:

The Senate bill shortens the depreciable life of commercial assets from 39 years to 25 years, meaning that the rate at which property owners can take these deductions is sped up, according to the Times. Shimon Shkury, founder of Ariel Property Advisors, says the change is a win for commercial property owners.  “The property owner has a non-cash deduction, and essentially shelters more income,” he said.

Sources:

* https://therealdeal.com/2017/11/03/the-good-and-bad-news-about-the-gop-tax-plan/