Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial Briefs

More Articles  Printer Friendly Version

 

Bad News: The New Tax Law Curbs A Home's Deductibility

Your home is a castle, as the politically correct version of the adage goes, but the bad news is that the new tax law puts your castle under siege - at least in terms the cost of a mortgage and the deduction of state and local taxes.

Mortgage interest deduction. Should you purchase a home between mid-December 2017 and the end of 2025, you now can only deduct the mortgage interest paid on loans of up to $750,000. The old ceiling was $1 million. Current mortgage holders are grandfathered under the previous system. If you got a mortgage on Dec. 14, 2017 or earlier, you still can deduct interest based on the $1 million cap. For home equity loans, usually used for home improvements, it's a total wipeout - at least if you take one in 2018 through the end of 2025. Most homes in the U.S. are worth much less than $750,000, so the new loan limits won't harm the bulk of homeowners.

State and local tax deductions. Time was when you could claim every penny of property taxes paid to your municipality as an itemized deduction. (That is, if you weren't subject to the alternative minimum tax.) But the new law bundles property taxes with state and local income taxes, and caps the deduction at $10,000. There's a marriage penalty here, as it doesn't matter whether you are filing as a single or a couple. This provision, too, ends after 2025.

On the bright side, maybe you won't need that moat anymore.


Email this article to a friend


Index
Your Alma Mater Or Your Family?
Qualifying For The New Business Owner Tax Break
This Is Not Your Parents' Interest Rate Cycle
Life Is Fragile, So, Please, Value Each Day As Priceless
If Family Is Wealth, Then Planning Is Immortality
Everything You've Learned About Interest Rates May Be Wrong
This First Year Under The New Law Requires Planning
Commodities Stink But Serve A Purpose
10 Years After The Great Recession
The Interest Rate Inflection Point And Your Portfolio
Inflation: A Portfolio Risk That Never Dies
New Ways To Influence The Next Generation
Giving More To Loved Ones - Tax-Free
New Deduction Rules For Business Owners
A Bright Outlook For Consumer Spending
Six Tips To Avoid Phishing Scams

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2018 Advisor Products Inc. All Rights Reserved.
© 2018 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 markblack@vantagepointadvisor.com |
Contact Us

Privacy Policy

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA/SIPC.  Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein.  We suggest that you consult with your financial or tax advisor with regard to your individual situation.  This site has been published in the United States for resident of the United States.  Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.