• Team Sisters
  • Raving Fans
  • Around Town
  • News you can USE!
  • Timely Advise
  • Buyers
  • Sellers
  • Property Search
  • What’s My Home Worth

Team Sisters BR

~ Local Real Estate Market and Community Information for EBR, Ascension & Livingston Parish Residents

Team Sisters BR

Tag Archives: tax relief

Homeowner Tax Changes

16 Tuesday Jan 2018

Posted by Make your Home your Haven! in News you can USE!, Timely Advise

≈ Leave a comment

Tags

Home Ownership Tax Benefits, New Tax Law, New Tax Law 2018, tax breaks, Tax Changes 2018, Tax Deductions, tax incentives, tax relief, TAX SAVINGS, taxes

The new tax law that was signed into effect at the end of 2017 will affect all taxpayers. Homeowners should familiarize themselves with the areas that could affect them which may require some planning to maximize the benefits.

Some of the things that will affect most homeowners are the following:

  • Reduces the limit on deductible mortgage debt to $750,000 for loans made after 12/14/17. Existing loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap.
    40009294-250.jpg
  • Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the existing mortgage being refinanced.
  • Repeals the deduction for interest on home equity debt through 12/31/25 unless the proceeds are used to substantially improve the residence.
  • The standard deduction is now $12,000 for single individuals and $24,000 for joint returns. It is estimated that over 90% of taxpayers will elect to take the standard deduction.
  • Property taxes and other state and local taxes are limited to $10,000 as itemized deductions.
  • Moving expenses are repealed except for members of the Armed Forces.
  • Casualty losses are only allowed provided the loss is attributable to a presidentially-declared disaster.

The capital gains exclusion applying to principal residences remains unchanged. Single taxpayers are entitled to $250,000 and married taxpayers filing jointly up to $500,000 of capital gain for homes that they owned and occupied as principal residences for two out of the previous five years.

Not addressed in the new tax law, the Mortgage Forgiveness Relief Act of 2007 expired on 12/31/16. This temporary law limited exclusion of income for discharged home mortgage debt for principal homeowners who went through foreclosure, short sale or other mortgage forgiveness. Debt forgiven is considered income and even though the taxpayer may not be obligated for the debt, they would have to recognize the forgiven debt as income.

These changes could affect a taxpayers’ position and should be discussed with their tax advisor.

Attachments area

Share this:

  • Share
  • Facebook
  • Email
  • Twitter
  • Print
  • Reddit
  • Tumblr

Like this:

Like Loading...

Reducing Interest Expense

07 Wednesday Jan 2015

Posted by Make your Home your Haven! in News you can USE!

≈ Leave a comment

Tags

Home Ownership Tax Benefits, mortgage qualifications, Refinance mortgage, tax relief

Debt Free Home.png

0% financing has induced car buyers into taking the plunge because it doesn’t cost anything to use someone else’s money.  While mortgage rates are not at zero, they’re close enough that many buyers are applying similar logic.

Qualified mortgage interest is deductible on taxpayers’ returns subject to the maximum acquisition debt of one million dollars.  For the fortunate homeowners who have paid off their mortgage, their acquisition debt was reduced to zero and only the interest on a maximum home equity debt of $100,000 is deductible.

If you have to pay interest, deductible interest is preferable because it reduces your actual cost.

Consider the following example of a taxpayer with a $500,000 debt-free home.  If they did an 80% cash-out refinance of $400,000, $100,000 would be considered home equity debt and the interest on that would be deductible on their income tax.  The other $300,000 of debt is considered personal debt and the interest is not deductible.

However, because the rates are currently so low, the loss of deductibility of the interest doesn’t have as much impact as if the rates were higher.  The key is to have a good purpose for the money that would offset the actual cost of the interest.

Paying off a higher rate debt such as credit cards, student loans, possibly, business debt could all have significantly higher interest rates.  Refinancing a home and eliminating debts like these could be a big savings.

All lenders are not the same.  Call for a recommendation of a trusted mortgage professional.

Share this:

  • Share
  • Facebook
  • Email
  • Twitter
  • Print
  • Reddit
  • Tumblr

Like this:

Like Loading...

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 801 other followers

Realtor®

RE/MAX Professional
225.615.7755 Office
225.933.7062 Mobile janicedubois@gmail.com www.teamsistersbr.net www.janicedubois.com
8556 Jefferson Hwy Suite A Baton Rouge, La. 70809
e-Pro, SRS, ABR, CRS
Team Sisters w/ Carol Cotten & Mary DiBenedetto
Broker Lisa Landers
License # 0995682454 ...
Agent license # 71854 In the state of Louisiana by LREC
Each Office Interdependently Owned and Operated | EBR, Livingston and Ascension Parishes
The Greatest Compliment I can Receive is a Referral from my Clients, Family, and Friends! - Thank You

Categories

Recent Posts

  • Newest Development off of Hoo-Shoo-Too Rd in Baton Rouge
  • New Listing in Baton Rouge!
  • COVID 19 UPDATE
  • We are here for you!
  • YOU CAN BUY A HOME WITH LESS THAN 20% DOWN!

Blogroll

  • Best Real Estate Blog 0

Archives

Latest Tweets

  • Check out my #listing in #BatonRouge #LA #realestate #realtor tour.corelistingmachine.com/home/SSHEMP https://t.co/2yHCD30r1zPressed 4 hours ago
  • You can make this house your home! Ask me for more info. #realestate cpix.me/l/116911934 https://t.co/GdX2zxeMVaPressed 12 hours ago
  • You won't be able to apply for a #loan if your #credit is frozen. cpix.me/a/116413463 https://t.co/CNxKmRcrirPressed 2 days ago
  • It's deals like this that hardly ever stay on the market! #beautifulhome #homesweethome cpix.me/l/116239111 https://t.co/PPqcmDpYbPPressed 4 days ago
  • Ayers Rock also serves as a place to stargaze. Find out more in this #travelguide. #Australia… twitter.com/i/web/status/1…Pressed 4 days ago
  • Where Have All the Houses Gone? simplifyingthemarket.com/en/2021/02/22/…Pressed 4 days ago
  • Just posted a photo instagram.com/p/CLj6jrDnvcvb…Pressed 5 days ago

Start a Blog at WordPress.com.

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.
%d bloggers like this: