Here’s what Real Estate Owners and Investors need to know about the Tax Cuts and Jobs Act that was signed into law December 2017.
MORTGAGE INTEREST DEDUCTION
The new limit on deductible mortgage debt is $750,000, down from the previous $1 million. There are certain situations which may allow a home purchase to qualify for the $1 million, even if the home closes after Jan. 1, 2018. Talk to a tax professional to learn more.
Interest paid on home equity loans is only deductible if the proceeds are used to substantially improve the residence.
Interest remains deductible on second homes, but is subject to the $1 million/$750,000 limits.
One Paseo developer, Kilroy Realty Corp, has begun to sign up tenants. About 40 percent of the retail space will be devoted to food and beverage that fit the project's theme, rather than waiting for tenants to decide to sign up. The first four restaurants planned for the project signed on in late January 2018. The four are Michael Mina and Ayesha Curry’s International Smoke, the modern organic Mexican restaurant Tocaya Organica, chef Dakota Weiss’ Cali-meets-Hawaii Sweetfin Poké and Huntington Beach’s Ways & Means Oyster House.