Hi-lights of the largest tax reform in decades and the impact on one of your largest investmens - your home
Tax Reform has been a major topic in the real estate and mortgage industry. According to the National Association of Realtors, home price growth in 2018 is expected to range from 1—3%. While there was considerable change in the tax code, many coveted tax benefits to homeowners were retained. These include:
Capital Gains exclusion on sale of your primary residence was maintained. You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale.
Mortgage Interest Is Still Deductible. But, reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17
Home Equity Loan Interest. The final bill repeals the deduction for interest paid on home equity debt through 12/31/25. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.
Property Taxes. Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. This $10,000 limit applies for both single and married filers and is not indexed for inflation.
The following websties provide more inclusive and more detailed information:
The information on this page is not intended to provide tax or accounting advice. Please verify with your CPA or tax professional.
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