What you, as a Homeowner, need to know about the final tax bill.
Courtesy of the NATIONAL ASSOCIATION of REALTORS®
You trusted us with one or more of the biggest financial decision(s) of your life, and because of this, we will always continue to help you protect the interests of you, your family and your property. This is why we felt that it’s important that we share a few changes to the tax bill that will most affect you as a homeowner. We hope the below will help you in making the best financial decisions for you and your family! 🙂
Changes to the bill include the following:
• Capital Gains Exclusion. In a huge win for current and prospective homeowners, current law is left in place on the capital gains exclusion of $250,000 for an individual and $500,000 for married couples on the sale of a home, as long as they’ve lived there for two of the past five years.
• Mortgage Interest Deduction. The maximum mortgage amount for households deducting their mortgage interest has been decreased to $750,000 from the current $1 million limit. This change only applies to mortgage loans that were closed after December 15, 2017; loans that were in effect as of this date can still calculate the allowable interest deduction using the prior limit. Interest paid on loans that have been refinanced will continue to be deductible under the old rules as long as the new loan amount is not more than the original loan’s current balance.
• Property Tax Deduction. The deduction is limited to a total of up to $10,000 ($5,000 if married filing separately) for a combination of property taxes and either state and local income taxes or sales taxes.
• State and Local Tax Deductions. Both property taxes and state and local income taxes remain deductible, although with a combined limit of $10,000.