It’s tax time again, with the day filing deadline just over a month away, and the Tax Cuts and Jobs Act is now in effect, which means there are new requirements for homeowners. The media covered the changes in much detail in early 2018, and we wanted to share a few housing-related highlights with you as you get ready to file your 2018 tax returns. As you may know, the number of income tax brackets remains the same, but they include lower tax rates. Several itemized deductions, including moving expenses except with military households, interest on home equity loans unless used for home improvements, and more, have also been reduced or eliminated. Here are a few other important changes to keep in mind: Mortgage interest deductions are limited to a combined $750,000 of debt for both primary residences and second homes for any loans taken out after December 14, 2017. Current homeowners with loans made before that date are grandfathered into the previous deduction, allowing a combined debt limit up to $1 million. State and local tax deductions are capped at a combined $10,000 – this includes state and local property, income and sales taxes. Previously, these were fully tax […]
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