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Hello and Happy 2018, "PLEASE CHECK WITH YOUR TAX ADVISOR REGARDING THIS INFO"
I hope you all had a Merry
Christmas and a "safe and sane"
holiday season".
Now lets all have a productive
2018, and please email me and tell me how I can
earn your biz for this coming year!
The dust has settled & the
experts have weighed in on the new tax law
and NerdWallet is the
most non-partisan source of information I could
find.
Here’s how the new tax law affects
buyers and sellers!
Mortgage Interest
The mortgage interest tax
deduction is touted as a way to make
homeownership more affordable. It cuts the
federal income tax that qualifying homeowners
pay by reducing their taxable income by the
amount of mortgage interest they pay.
Under the new law, the deduction
is scaled back to interest on debt up to
$750,000, (vs.$1 million), for people who buy
homes after Dec. 15, 2017.
The law carves out an exception
for people who were under contract to buy a
home before Dec. 15, 2017, and closed escrow Jan. 1,
2018.
Exception: When a homeowner refis' the
old limit of $1 million still applies.
Property Tax
The deduction is limited to a
total of $10,000 for the cost of property
taxes, plus state and local income taxes.
Home Equity
The new tax law eliminates the
deduction for interest paid on home equity debt
(HELOCs). However "Piggy Back" loans are deductible.
Capital Gains
The exclusion is capped at
$250,000 for single individuals and married
taxpayers filing separately. The new law
doesn’t alter the capital gain exclusion for
homes.
Second Homes
Under current law, you may deduct
interest on mortgage debt on your primary home
and a second home although it reduced the
amount of (total) eligible mortgage debt to
$750,000.
Moving Expenses
Under the new law, only members of
the armed forces on active duty will be allowed
to deduct moving expenses.
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