SigMT

SigMT Volume 12 Issue 1

Issue link: https://www.e-digitaleditions.com/i/1073325

Contents of this Issue

Navigation

Page 101 of 115

SiG MT 102 SIGN ATUREMT's REALTOR TIPS By Leanne Potts ax season is upon us, and to make it more interesting this year, the tax code has changed along with the rules about tax deductions for homeowners. e biggest change is that homeowners will no longer be able to write off their property taxes or the interest paid. Stay calm… this doesn't mean your taxes are going up. Here's a roundup of the rules that will affect homeowners and the changes you can expect. e standard deduction, that amount everyone gets, whether they have actual deductions or not, nearly doubles under the new law. It's now $24,000 for married, joint-filing couples (up from $13,000). It's $18,000 for heads of household (up from $9,550) and $12,000 for singles (up from $6,500). Homeowners will now get a beer deal taking the standard than they would with their itemizable write-offs. According to the federal government, the number of homeowners who will be able to deduct their mortgage interest under the new rules will fall from around 32 million to about 14 million, nearly a 56% drop. "is doesn't necessarily mean they'll pay more taxes," says Evan Liddiard, CPA and director of federal tax policy for the National Association of REALTORS in Washington, D.C., "It just means that they will no longer get a tax incentive for buying or owning a home." So, will you be itemizing, or will you be taking the standard deduction? If the answer is a standard deduction, you will be pleased to know the tax forms are easier when you don't itemize, says Liddiard. e new law caps the mortgage interest you can write off with loan amounts less than $750,000. However, if your loan was in place by December 14, 2017, the loan is grandfathered, and the old one million-dollar maximum amount still applies. Since most don't have a mortgage larger than $750,000, they won't be affected by the cap. How the New Tax Law Affects Mortgage Interest Tax Deductions for Homeowners T

Articles in this issue

Archives of this issue

view archives of SigMT - SigMT Volume 12 Issue 1