Tax Reform 2017: What It Means for You and Your Home?

Today, the new tax reform bill was passed, opening up the door to slews of questions regarding how you and your property are going to be taxed.

Some key highlights on what was changed (or not changed) in the final version of the bill:

• Capital gains exclusion. In a huge win for current and prospective homeowners, current law is left in place on the capital gains exclusion of $250,000 for an individual and $500,000 for married couples on the sale of a home.

• Mortgage interest deduction. The maximum mortgage amount for households deducting their mortgage interest has been decreased to $750,000 from the current $1 million limit.

• State and local tax deductions. Both property taxes and state and local income taxes remain deductible, although with a combined limit of $10,000.

Of course, the exact effect on each individual depends on your specific situation. If you have further questions on understanding of some of the changes that pertain to real estate, feel free to Contact Me!

Peter