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.
DEDUCTION FOR STATE AND LOCAL TAXES (SALT)
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