Cherry Creek Mortgage
Mortgage News 12 January 2018

New Tax Laws & Home Ownership

There is often a lot of confusion and mixed interpretations when we have changes to our tax laws. Below is a quick summary of the key points that may impact homeowners.

If you have a more complex tax situation or specific questions about the new bill, please contact your certified tax professional.

 

 

Current Tax Law

Final Tax Bill

Mortgage Interest Deduction

Deductible up to $1MM mortgage & $100,000 of home equity

Deductible up to $750,000 of new mortgages; HELOCs are no longer deductible

Key Points on this change:

  • Those with a current mortgage closed before December 15th, 2017 can still deduct up to $1MM
  • Any new rate/term refinances contracts executed between 12/16/17 – 4/1/18 and scheduled to close, but that were extended beyond the New Year, will be allowed to follow the previous guidelines

Capital Gains

Exempt up to $250,000 single; $500,000 married if you have lived in home 2 of the last 5 years

No Change

State and Local Tax

Deductible

Caps property and state income tax deductions at $10,000

Standard Deduction

$6,500 single; $13,000 married

$12,000 single; $24,000 married

Lifetime Estate Tax Exemption

$5.49MM single; $10.981MM married

$11.2MM single; $22.4MM married

Annual Gift Exclusion

$14,000

$15,000