The tax plan passed by Congress last year may effect the deductions taken for home ownership. Here are some of the changes the plan makes.
MORTGAGE INTEREST –
The mortgage interest deduction has been reduced from $1,000,000 for a married couple filing jointly to $750,000. For people who are single or married, but filing separately, the deduction has been reduced to $375,000.
PROPERTY TAXES –
Home owners may deduct up to $10,000 in property taxes annually. Previously there was no cap. The home equity deduction was eliminated entirely.
MOVING EXPENSES –
People moving due to job relocation used to be able to deduct their moving expenses. This deduction has been eliminated for everyone except active duty members of the armed forces.
The standard deduction has almost doubled, so those who itemized may no longer need to do so.
Be sure to talk with your tax professional to find out how your personal situation is affected by the new tax plan.
For more information on home ownership, contact us.