NEW TAX LAWS FOR BUYERS AND HOMEOWNERS

Dated: 01/05/2018

Views: 591

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 Upcoming Changes for Some Home Buyers & Homeowners  
   
Under the new tax law, homeowners will have decisions to make in 2018, due to reductions or elimination of certain deductions under the new tax law.  
   
Real Estate: How The New Tax Law Compares to the Old Tax Law  
   
Measure Old Tax Law New Tax Law
Mortgage Interest Deduction
 
Could deduct interest on up to
$1 million in mortgages on primary & secondary residences
Can deduct interest on up to
$750,000 in mortgages on
primary & secondary residences
State and Local income, sales & Property Taxes  Can be deducted from federal income taxes Caps Federal income tax deduction at no more than $10,000 for total of all local state income, property and sales taxes
Interest on
home equity debt (HELOCs)
Home equity debt interest
is deductible up to $100,000 if not disallowed by the AMT
Cannot deduct interest on home equity debt-new or existing on personal residence unless improving the residence*

Equity debt on the personal residence is deductible if it is used to finance
or improve a rental property
Capital Gains
on Home Sales
Can exclude up to $500,000 of gain for joint filers or $250,000 of gain for
single filers from capital gains when selling a primary home, as long as the homeowner has lived in the
residence for 2 of the past 5 years
No ch
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