Today President Trump signed a sweeping tax bill into law. You may be wondering how this impacts you from a housing perspective. We’ve got you covered.
Property Taxes: Under the new plan, there will be a $10,000 cap on the amount you can deduct for any combination of state, local, and property taxes.
Interest Deductions: Mortgage interest deductions for new loans in 2018 will be allowed on loan debt only up to $750,000. The current law allows for deductions up to $1,000,000.
Currently, you can deduct interest on home equity loans up to $100,000. Under the new plan, interest on home equity loans will no longer be deductible.
Capital Gains Exclusion: While there was talk of this being changed, the final bill approved by Congress left this unchanged. Joint filers will still be able to exclude up to $500,000 when selling your primary residence provided you meet the residency requirement. The single filer’s exclusion amount will remain at $250,000.
This information does not constitute and is not intended to be a substitute for specific individualized tax planning advice.