How does the new tax bill affect the purchase of real estate? There are a few different details we want to highlight.
First, we want to make it clear that we’re not tax experts. If you want to go more in depth on how these tax changes impact you, talk to a CPA. Also, this new tax information is not for the 2017 filing that we’re doing now, but for the 2018 filing that we’ll do at the beginning of 2019.
The first change you need to know about involves the mortgage interest deduction. The acquisition debt was lowered from $1 million to $750,000, so the interest you pay on a mortgage is deductible up to $750,000.
"If you want to go more in depth on how these tax changes impact you, talk to a CPA."
An additional good piece of news regarding this change involves the home equity debt. The home equity debt is tax deductible if you use that debt to purchase the house. Many times, you’ll see people use a first or second debt to purchase a home. In that case, the home equity debt is tax deductible.
On the flip side, they cut out the home equity tax deduction for things like making renovations, buying a car, or paying off credit debt.
Lastly, we heard that the MCC credit would be wiped out, but that credit is still in play. If you’re a first-time homebuyer, you can get an interest credit of up to $2,000 toward your taxes. That can also help you lower your debt-to-income ratio.
If you have any more questions about these changes or you need a referral for a good CPA, don’t hesitate to reach out to us. We’d be glad to help you.
Author:Bill Burns Phone: 919-725-2837 Dated: February 8th 2018 Views: 86 About Bill: ...
View our latest blog posts in your RSS reader. Click here to access.
I have a strong focus on customer service. I am Association of Staging Professionals® designated Real Estate Agent and an Member of the Institute for Luxury Home Marketing. Through coursework completion; I have the tools to properly help stage a home for a faster sell, list homes in 19 different languages allowing for global syndication for maximum exposure. One in 12 homes sold in the U.S. are to foreigners. With the amount of foreign industry coming to work and play in Charlotte; global syndication is important. My coursework with the Institute for Luxury Home Marketing gives me the tools needed to effectively market ALL price points; giving them that extra edge on marketing to get them SOLD!
We at eXp Realty understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why our team of highly-seasoned real estate professionals is dedicated to providing exceptional, personalized service for all of our clients. We take great pride in the relationships we build and always work relentlessly on the client’s behalf to help them achieve their real estate goals.
Our team of experts represents the best and brightest in the industry, and we’re always striving to lead the field in research, innovation, and consumer education. Today’s buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With our extensive knowledge and commitment to providing only the best and most timely information to our clients, we are your go-to source for real estate industry insight and advice.
Our Mission Statement:
Our philosophy is simple: clients come first. We pledge to be in constant communication with our clients, keeping them fully informed throughout the entire buying or selling process. We believe that if you’re not left with an amazing experience, we haven’t done our job. We don’t measure success through achievements or awards, but through the satisfaction of our clients.