5 Homeownership Changes Coming Under New Tax Law

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Tax reform is a much-heated debate, albeit, it has happened.  The changes should not be a surprise as many homeowners have been keeping close tabs on th subject.  Here is a rundown of what is to come:

 

  1. Mortgage Interest Deduction: Scaled back to interest on up to $750,000 in debt (down from one million). This only applies to homes purchased after December 15th, 2017. No current homeowners in BUngalow Heaven affected. No effect on refinanced mortgages.
  2. Property Tax Deduction: Capped to $10,000 now. This will affect 5% of the homeowners in Bungalow Heaven. Primarily, those that own larger homes purchased since 2000 or paid near the $1 million mark in the past couple years. My advice is to review your tax bill for accuracy, it can be lowered
  3. Home Equity Debt Deductions: Homeowners with Home Equity Lines of Credit (HELOC) will no longer be able to deduct the interest on those loans.
  4. Second home interest deduction: Mortgage interest deductions from second homes drops from $1 million to $750,000 cap similar to the primary home deduction.
  5. Moving expenses: in the past moving expenses triggered by a job change could be deducted, that goes away except for . active military members. 

For more details on these changes and other tax-related info, this article from NerdWallet breaks it down pretty well. 

Naturally, anything tax-related should be covered by a tax professional, 

 

Michael Robleto

REALTOR®-Podley Properties

626-365-1581

michael.robleto@podley.com

Michael Robleto is a REALTOR® with Pasadena based Podley Properties. His analytical and open approach to sales has served his clients well in his twenty years of sales. Michael brings a modern data and technology-driven approach to real estate while focusing on the historic architecture of Bungalow Heaven. For Sellers or Buyers Agent representation he can be contacted directly. 

 

 

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