The U.S. tax system is seeing some of the biggest changes in more than 30 years. The Huffington Post wrote an article explaining some of the changes you will experience while filing your 2018 taxes. You can check out the article link for valuable information on tax write-offs, and also learn about the deductions you can claim. It’s also important to mention the standard deduction is much higher than what it was in 2017. Here are some of the changes that involve homeowners:
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Mortgage Interest above $750,000 – Under the new tax law, homeowners can write off mortgage interest up to $750,000. The law previously allowed up to $1 million. The good news is the law applies to new homeowners only. If you bought a home prior to December 15th, 2017, the $1 million cap still applies.
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Casualty and Theft Losses – Before the latest tax bill, victims of fires, earthquakes, floods or other natural disasters who experienced uninsured losses greater than 10 percent of their adjusted gross income could deduct a portion of those losses. Now, homeowners can only claim them if they were a result of a federally declared disaster.
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Unrestricted Home Equity Loan Interest Deduction – Homeowners could previously deduct interest paid on a home equity loan or line, or credit of up to $100,000 regardless of how the money was used. Currently, the homeowner must use the funds to buy, build or substantially improve their primary or secondary home to deduct the interest.
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Moving Expenses – Unless you are in the military moving to a new assignment, taxpayers can no longer claim moving expenses due to relocating for a new job.
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Unlimited SALT Deductions – The new tax law reduces the amount taxpayers can claim for taxes paid to agencies that are not the IRS, typically state and local taxes. There is now a $10,000 cap on all state income taxes, personal property taxes, sales tax and local taxes.
