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:
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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 |