Side-by-Side Comparison of House and Senate Tax Reform Legislation

Side-by-Side Comparison of House and Senate Tax Reform Legislation

Below is a side-by-side comparison of both bills. This document was updated on December 4, 2017.

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House Bill Senate Bill
Mortgage Interest Deduction Capped at $500,000. Retains current cap of $1,000,000
State and Local Tax Deduction Repeals deduction for income or sales taxes. Retains deduction for real property taxes, but limited to $10,000 (not indexed). Repeals deduction for income or sales taxes. Retains deduction for real property taxes, but limited to $10,000 (not indexed).
Capital Gains Exemption on Sale of Primary Residence Must own and use residence for at least five of the eight years prior to sale. Income limits apply. Must own and use residence for at least five of the eight years prior to sale. Income limits apply.
1031 Like-Kind Exchanges Limited to real property assets. Limited to real property assets.
Personal and Dependency Exemptions Eliminated. Eliminated.
Standard Deduction Increased to $12,000 single, $18,000 head of household, $24,000 for joint filers. Increased to $12,000 single, $18,000 head of household, $24,000 for joint filers.
MID for Second Homes Eliminated. Retained.
Home Equity Loan Deduction Eliminated for new loans. Eliminated for new and current loans.
Moving Expense Exclusion and Deduction Eliminated. Retained only for active military homeowners.
Student Loan Interest Deduction Eliminated. Retained.
Child Tax Credit Increased from $1,000 to $1,600. Inc Increased from $1,000 to $1,650 and raise maximum age from 16 to 17.
Casualty and Theft Loss Deduction Eliminated. Eliminated except for personal casualty loss incurred in a Presidentially declared disaster.
Depreciation Recovery Period for Real Property (Residential Rental) Reduced to 25 years from 27.5 years.
Depreciation Recovery Period for Real Property (Nonresidential) Reduced to 25 years from 39 years.
Depreciation Recovery Period for Real Property (Leasehold Improvements) Reduced to 10 years from 15 years.
Tax Rate Reduction for Qualified Business Income of Pass-Through Entities. Caps the pass-through rate at 25%, but subject to strict anti-abuse rules that will likely prevent real estate professionals from gaining benefits from. 23% deduction, phased out for singles with taxable income of $250,000 and married couples with $500,000.

Additional Information

U.S. House of Representatives Tax Reform Talking Points

U.S. Senate Tax Reform Talking Points

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