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SiG MT 104 State and local taxes such as income, sales, and property taxes are still itemizable write-offs. at's called the SALT deduction in CPA lingo. Still, tax changes for 2019 (that's tax year 2018) mean you can't deduct more than $10,000 for all state and local taxes combined, single or married. ($5,000 per person if you're married but filing separately.) e SALT cap is bad news for people in areas with high taxes. e majority of homeowners in 20 states have been writing off more than $10,000 in SALT each year, so they'll lose some of this deduction. "is is going to hurt people in high-tax areas like New York and California," says Lisa Greene-Lewis, CPA and expert for TurboTax in California. "New Yorkers, for example, were taking SALT deductions averaging $22,000 a household." e changes do not affect landlords, however, as there continues to be no limits on the amount of mortgage debt, interest, or state and local taxes that can be wrien off on rental property. Schedule E still allows write offs for operating expenses like depreciation, insurance, lawn care, and utilities. You can continue to write off the interest on a home equity or second mortgage loan (if you itemize), but only if you used the proceeds to substantially beer your home and only if the total, combined with your first mortgage, doesn't go over the $750,000 cap ($1 million for loans in existence on December 15, 2017). If you used the equity loan to pay medical expenses, take a cruise, or anything other than home improvements, that interest is no longer tax deductible. Here's a big FYI: e new rules do not grandfather in old home equity loans if the proceeds were used for something other than substantial home improvement. For example, if you took one out five years ago to pay your child's college tuition, you can no longer write off that interest. 1. Single people may get more tax benefits from buying a house. "ey can oen reach [and potentially exceed] the standard deduction more quickly," says Liddiard. 2. Student loan debt is deductible up to $2,500 if you're repaying, whether you itemize or not. 3. Charitable deductions and some medical expenses remain itemizable. If you're generous or had a year with lots of medical bills, these, added to your mortgage interest, may be enough to bump you over the standard deduction hump and into the write-off zone. 4. If your mortgage is over the $750,000 cap, pay it down faster so you don't eat the interest. You can add a lile to the principal each month or make a 13th payment each year. Article provided by HouseLogic.com S MT David Leray, davidleray @ kw.com Great Falls, Montana BUILDING & LAND FOR SALE! (406) 590-0188 Prime 10th Ave S location. Completely remodeled retail ready on main floor with living quarters on second floor which would be ideal for owner/operator, or lease upstairs living quarters for additional income. Building and land for sale. MLS 18-2699 NORTHERN MONTANA Each office is independently owned & operated SignatureMT's

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