Here are point that I understand to be primary areas of impact for homeowners from the new tax laws. I am not an accountant. Talk to your tax adviser for specific tax ramifications and advice for you.
- Capital gains tax on the sale of your primary residence is still excluded on sales prices up to $250,000 for a single taxpayer and $500,000 for a couple
- Interest on home equity loans can no longer be deducted unless the funds are used for significant home improvements
- With the doubling of the standard deduction to $24,000 for a married couple, many households will no longer itemize deductions meaning they won’t see benefit from the mortgage interest deduction
- Mortgage interest deduction is capped at $750,000 for new loans
- Deductions for state and local taxes including property taxes, income and sales taxes are capped at $10,000
Consult your tax accountant for specifics on how it will affect you.
