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Only a pinch of SALT- Removing the taste for Home Ownership.

Updated: Apr 23, 2021

Photo by Karolina Grabowska on

On November 1, 2017 the house GOP passed 2018 Tax Plan. With much heart ache, the plan will reduce taxes that would pay for many public services, including for health care. That was not a surprise. What was a surprise by many was the elimination of the State and Local Tax (SALT) deduction for interest payments made on property. This tax deduction has been on the books since 1913 where interest as a whole was allowed to be deducted. But property interest was not identified. Many historians believe that the deduction of interest payments was meant only for business. Very few people in 1913 owned their own homes.

On November 28, 2017, Bernie Sanders, Ted Cruz and others debated the 2018 tax plan, including SALT that came up very early on. The republican perspective argued that property interest deduction would not benefit the middle class. Stating that one-third of SALT make over $500, 000 or more. Ironic considering that historically, the democrat believed it benefited the wealthy business elite who had large properties. When looking at SALT as a whole, including interest for business, both parties are correct. After all, many tax payers don’t have enough to itemized their tax returns.

How will this impact home owners with disabilities? Possibly greatly. If you are lucky enough to have a health care flex account, many medical related expense are tax free and be deducted from your taxes. Itemization can be increased greatly more if you qualify to use the ABLE act account. The ABLE account allows individual to have a tax free account to pay for disability related expenses. Expenses is more than just medical costs, but anything the “but for” your disability, you would not have spend or be charged more. However, you must either be on social security disability or have your disability before you twenty-seventh birthday.

If disabled home owners can use any of these tax free accounts, itemization may be in fact feasible. Using SALT for their property can be much needed money back to the home owner and be a potential windfall.


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