What The Tax Bill Means For Homeowners

Friday Republicans unveiled the final version of their tax bill. Having reconciled their versions of tax legislation here’s what’s in the final legislation lawmakers will be voting on next week.

Homeowners will be able to deduct interest on the first $750,000 of mortgage debt on a first or second loan on a newly purchased home. It will not affect current homeowners.

Homeowners must itemize their taxes if they want to claim mortgage interest deduction and it eliminates the deduction for interest on home equity loans.

It allows individuals to deduct up to $10,000 in state and local taxes and property taxes.

Taxpayers will be able to exclude up to $500,000 from capital gains when they sell their primary residence as long as they’ve lived there for two of the past five years.

Source: http://money.cnn.com/2017/12/17/real_estate/tax-bill-mortgage-property-tax-deductions/index.html?section=money_pf