Many people have concerns about the nation’s new Tax Cuts and Jobs Act. As Realtors, Dave and Troy think it is important that our clients are informed about changes that may affect their real estate interests. Here are the parts of this Act that we believe may most affect local homeowners:
- Reduced Deduction on Mortgage Interest
Homeowners can deduct the mortgage interest of loans up to $750,000.
- Limited Property Tax Deductions
Homeowners are permitted an itemized deduction of up to $10,000 paid for state and local property taxes.
- Increased Standard Deductions
The Act nearly doubles the standard taxpayer deduction: it is now $12,000 for individuals, and $24,000 for joint filers.
- Capital Gains Exclusion
Despite worries that the capital gains exclusion would be altered, this feature remains unchanged: taxes are waived on $250,000 (single filers) or $500,000 (joint filers) of net gains on home sales for eligible homeowners.
If you want to learn more about the implications of this new Act, Dave and Troy encourage you to consult a tax specialist for details.