5 Homeownership Changes Coming Under New Tax Law
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:
- 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.
- 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.
- Home Equity Debt Deductions: Homeowners with Home Equity Lines of Credit (HELOC) will no longer be able to deduct the interest on those loans.
- Second home interest deduction: Mortgage interest deductions from second homes drops from $1 million to $750,000 cap similar to the primary home deduction.
- 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 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.