What the New Tax Bill Means for your Property
You may be wondering what the new tax bill means for your property.
Because you are a valued customer of the Weiskerger Home Group, we want to keep you up to date on information that impacts your real estate investments. The new tax bill that Congress recently passed has implications for individuals and we are here to help you break it down.
What the bill means for your mortgage interest deduction:
- Under the new bill, mortgage interest can still be deducted on mortgages (including re-financing) incurred after December 15, 2017 up to $750,00 or less for individuals or married couples filing jointly ($375,000 in cases of married filing separately)
- The New bill still allows taxpayers to include mortgage interest on second homes but with the same parameters as above.
- Interest deductions will no longer be allowed on home equity indebtedness
- Any Mortgage indebtedness (including re-financing) incurred before December 15, 2017 has a limit of $1,000,000 ($500,000 in the case of married filing separately)
What the bill means in terms of your real estate tax deduction:
- Under the new bill, real estate taxes can be deducted up to a maximum of $10,000 for the year. State and local tax withholdings will be added to the real estate tax deduction and the total will be limited to $10,000.
The bill does not change points paid on a mortgage:
- Under the new bill, points paid during closing for mortgage indebtedness are still deductible.
How the bill effects gains on the sale of a principal residence:
- Under the new bill, the gain on the sale of a principal residence remains unchanged as individuals married filing jointly can exclude $500,000 ($250,000 filing single) on the gain related to a sale on their principal residence.
- To qualify for the exclusion, either yourself or your spouse must own the property and have lived in it for at least two (2) of the last five (5) years.
We are here for you each step of your process. Whether you are looking for your next home, selling your current house or investing in property home we are your local experts for all of your real estate needs. We have an extensive network of professionals to serve you through every aspect the process. From understanding the most strategic ways to invest in property to obtaining the financing you need and everything between, we have a professional for that!
We look forward to connecting you with any resources you need and serving you in the coming months!