It’s the dreaded month when taxes are due. With any luck, you have already put 2017 to bed and filed with the IRS. But as we head further into the 2018 tax year, it’s important to understand the new laws recently enacted by Congress.
- For homeowners, there are two particular changes of note:
” The amount of home mortgage interest debt homeowners can deduct has been lowered from $1 million to $750,000. Such debt for homes purchased before Dec. 15, 2017 can still be deducted up to $1 million, but mortgage interest debt incurred after this date is eligible only for the lower amount.
- ” Previously, the amount of state and local taxes that could be deducted was unlimited. This is no longer the case. The 2018 tax law allows homeowners to deduct property taxes and income or sales taxes up to a combined limit of $10,000. (Thankfully, Coloradoans are unlikely to be affected by this, as we are a low-tax state. Very few homeowners would have taxes over $10,000. Those in states with higher taxes – such as California, Connecticut, Oregon, Massachusetts, New Jersey, New York – will pay the highest price.)
As always, with financial considerations, be sure to consult with a tax professional for information on your specific situation.
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