Tax Reform for 2018
| Tax Law Through 2017 | New in 2018 | |
Mortgage Interest Tax Deduction |
Homeowners were able to deduct mortgage interest up to a combined $1 million on a primary residence and second/ vacation home. | Mortgage interest deductions have been reduced to a combined $750,000 of loan debt for primary residences and second/vacation homes |
| Property Tax Deduction | Homeowners could deduct the full amount for their local property taxes, as well as the full amount of either their state income or sales taxes. | Deductions for property taxes, as well as state income or sales tax, are now capped at a combined $10,000 |
| Home Equity Tax Deduction | Homeowners could deduct interest on home equity debt up to $100,000, even if those loans were used to fund expenses other than home improvement, like a child’s college tuition. | Homeowners can take an interest deduction up to $100,000 of home equity debt only if the loan is spent on the home |
| Moving Expense Tax Deduction | Home buyers could deduct reasonable moving expenses if certain requirements were met. | Moving expenses are no longer tax deductible |
| Capital Gains Tax Exclusion | This exclusion allows married filers to exclude up to $500,000 when selling their primary home, as long as they’ve lived there 2 of the past 5 years | The capital gains tax exclusion remains the same |
Thanks Denee Mueller!
Are you ready to Sell? Ready to Buy? Call me Today! The Triangle Real Estate Market is Ready for you! Your Triangle Relocation Specialist & Certified Residential Specialist~
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