Tag: property taxes

Mortgage Insurance Premiums Get an 11th Hour Tax Break!

February 15, 2018

On February 9th, taxpayers got a surprise break for their 2017 tax returns. The Bipartisan Budget Act of 2018 included a last-minute allowance for private mortgage insurance (PMI) to be deducted for the 2017 tax year. If you plan to take advantage of this one, you cannot also take the standard deduction. Itemizing is required to take this special deduction. Also, if your adjusted gross income is more than $100,000, be sure to check the phase-out limits. There is no word on whether this deduction will continue into 2018.

What is PMI anyhow? When your down payment is less than 20%, most lenders require you to buy private mortgage insurance. This protects against losses should a person default on their mortgage.

Sick of paying mortgage insurance? You might have the home equity to refinance. Call us today for a free no-obligation consultation.

 

 

This information does not constitute and is not intended to be a substitute for specific individualized tax planning advice.

How will Housing be Impacted by the New Tax Plan?

December 22, 2017

Today President Trump signed a sweeping tax bill into law. You may be wondering how this impacts you from a housing perspective. We’ve got you covered.

Quick Recap

Property Taxes: Under the new plan, there will be a $10,000 cap on the amount you can deduct for any combination of state, local, and property taxes.

Interest Deductions: Mortgage interest deductions for new loans in 2018 will be allowed on loan debt only up to $750,000. The current law allows for deductions up to $1,000,000.

Currently, you can deduct interest on home equity loans up to $100,000. Under the new plan, interest on home equity loans will no longer be deductible.

 

Capital Gains Exclusion: While there was talk of this being changed, the final bill approved by Congress left this unchanged. Joint filers will still be able to exclude up to $500,000 when selling your primary residence provided you meet the residency requirement. The single filer’s exclusion amount will remain at $250,000.

 

 

This information does not constitute and is not intended to be a substitute for specific individualized tax planning advice.