The final tax bill passed by Congress in December of 2017 included a couple of last minute, final revisions to the real estate related changes outlined in my previous post. The tax reform had threatened to increase the amount of time required by homeowners to live in a home in order to avoid capital gains taxes on profits from two of the last five years to five of the last eight years. That proposed changed was dropped from the final bill. Homeowners still need only live in their home for two of the last five years to avoid the capital gains tax on profits of more than $250,000 (or $500,000 for married couples) on the sale of their primary residence. The other real estate related revision in the final bill was a change to the amount of mortgage interest homeowners can deduct. Previously, homeowners could deduct mortgage interest on up to $1 million dollars of mortgage. The latest version proposed reducing that deduction so that it applied to only $500,000 of mortgage. The final bill settled on interest on mortgages up to $750,000 being deductible. The final version also allows mortgage interest on second homes to be deducted, which had threatened to go away entirely in previous versions.
Social Links Widget
Click here to edit the Social Media Links settings. This text will not be visible on the front end.
Katie's Posts • January 3, 2018
Update: Real Estate Related Changes in Final Tax Bill
by Katie Sengstake
Katie's Posts February 2023: The Year Behind and the Year Ahead My word for 2022: “barrage”. A barrage of business. A barrage of news and headlines. A barrage of information. I know some of this sentiment is likely just due to my age. I remember when my kids (who are now 22, 20 and 17 years old) were babies and toddlers, my mom and those of […]
Katie's Posts Trusting Numbers Recently I listened to a great episode of the Ted Radio Hour on NPR. The episode was entitled: Can We Trust the Numbers. Numbers and statistics tend to lend credibility to claims and assertions. But numbers can be skewed in so many ways. The cherry-picking and manipulation of raw data can be used to spin […]
Katie's Posts Cohabitation at Any Age Solo living is becoming more difficult for younger generations, especially for millennials who are struggling to afford rising home prices. Shared living, such as cohabitating with roommates or parents, is a way to cut down on costs and living expenses—a route many young professionals are choosing to take. But millennials are not the only ones […]