Tax Prep With Your Needs In Mind
Tax Prep With Your Needs In Mind
Tax Preparation with your needs in mind
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An ongoing series of informational entries
An ongoing series of informational entries
Tax Cuts and Jobs Act and How it Affects HomeOwners
Tax Cuts and Jobs Act and How it Affects HomeOwners
February 7, 2018
Are you a homeowner, Do you know how the new Tax Cuts and Jobs Act will affect your taxes when its time to file for 2018? Here are a few things for you to be aware of
1) The mortgage interest deduction will be capped for interest paid on principal amounts of up to $750,000 for tax years beginning after Dec. 31, 2017.
Existing mortgages incurred before Dec. 15, 2017 are grandfathered in at $1 million
as long as the grandfathered loan continues or is refinanced. If a new loan is acquired your interest deduction will be capped at the interest paid on $750,000 only.
2) State and Local Taxes
Itemized state and local tax deductions, including property taxes, is limited up to $10,000 for joint filers ($5,000 for married
filing separate).
Sales taxes may be included as an alternative to claiming state and local income taxes.
3) Miscellaneous Itemized Deductions have been severely cut. You will no longer be able to deduct your Union Dues, Tax Preparation Fees, Un-reimbursed employee expenses (mileage, bridge tolls, uniforms, etc.)
Coming soon, a post on how the tax reform effects businesses...