Changes in Tax Laws....You Need to KNOW....

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker


The New Year is bringing changes in tax laws...and  knowing them certainly helps prepare you for the year ahead. While in some cases, that TAX CHANGESmay mean you cannot change your present situation...it  may mean how you make changes in how you plan for the year ahead.
Mortgage interest deduction reduced to $750,000 of mortgage debt
ThIs interest deduction has been reduced to mortgage debts up to $750,000 total; it was formerly a milliojn for 1st and 2nd residences that qualitied. Only homes purchased after January 1, 2018 for over $750,000  will be impacted.

Higher Standard Deduction
The standard deduction for  people filing singly almost doubled from $6,350 to  $12,000  as well as for couples filing jointly, deduction went from $12,700 to $24,000.  A standard deduction may take the place of itemizing dedutions for some taxpayers.

Home equity interest is no longer deductible

Home equity loans have become the "American Piggy Bank"  and used for vacations, college funds, etc Now thePiggy bankinterest paid can only be used in the purchase, building or significant improvements on a home....this little piggy is no longer available for everything else.

Homeowners can still deduct mortgage interest paid on a home renovation loan, which could result in a significant tax break. This is true when mortgage interest exceeds the standard deduction

       The BEST advice....

Is to consult your tax professional to learn how these changes impact your individual situation. 

      This has been a practical advice post brought to you by Sally K.& David L. Hanson, Broker Associates with EXP Realty,honored to be of service for all things real estate in southeastern Wisconsin.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
4,098,622
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Sally,

Thanks for the info, and as you emphasized in your post, consult your professional, which we will do.  A

Jan 08, 2019 12:10 PM #1
Ambassador
3,644,431
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David this is good information to know, but I do not mess around with the IRS, I have my accountant take care of it.  I want someone to keep me company in case the IRS comes knocking at my door

Jan 08, 2019 02:28 PM #2
Rainmaker
2,681,298
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Sally.

These new tax laws are way beyond me.  Other than utilities and insurance I have only two bills.  I let my CPA handle my tax issues.

Jan 09, 2019 01:26 AM #3
Rainmaker
5,021,113
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for sharing this information.

It is always smart to have an outstanding CPA.

Jan 09, 2019 04:30 AM #4
Rainmaker
2,273,398
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I am hoping that the increased standard deduction will greatly improve my tax situation.  I don't keep up with such stuff, but my accountant does and advises me on what I should or should not do.

Jan 09, 2019 05:19 AM #5
Rainmaker
1,449,216
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Sally and David, thank you for the tax information. I am always happy to pay my CPA to prepare everything, taxes are over my head with the constant changes. 

Jan 09, 2019 05:49 AM #6
Rainmaker
3,015,295
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

We are as wel Amanda S. Davidson l...since we don't talk to him every day...we always appreciate the "heads up" that are not written in accounting-eze !

Jan 09, 2019 05:52 AM #7
Rainmaker
4,694,683
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the reminder about the tax changes.  I have spoken to my CPA and it is not positive for my taxes.

Jan 09, 2019 10:26 AM #8
Rainmaker
1,803,883
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

What?  Changes?  There are never changes to the tax code!

Oh, wait.

Sorry.  My bad.

Jan 09, 2019 10:32 AM #9
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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