2018 Tax bill changes.
Are you as confused as me?
You are not alone. You see, I was confused even though I’ve read many articles about the changes. But, after going to a meeting, some of the changes were explained to us – in English. Let me try to pass along what I have learned – in English.
The standard deductions have been doubled for 2018. For a couple, the standard deduction is now $24,000 for 2018. It was $12,000. And for a single person, it has doubled from $6000 to $12,000.
Now wasn’t it nice of the government to double that deduction for all of us?
Now hold on for just a minute.
The government gives, and they also take away.
If you do not itemize your deductions, the increased deductions will probably help you. And there is no need for you to continue reading this article.
But if you are like many homeowners and you itemize on your tax returns, there are some changes.
If you have a home equity loan, you were able, under many circumstances, to deduct the interest on that loan. No longer, they took that deduction away.
Prior to 2018, if you had property taxes in excess of $10,000 you were able to deduct the entire amount of property taxes paid. However, in 2018, the tax bill changes will limit you to a maximum of $10,000
And, prior to 2018 you were allowed to deduct the interest on up to $1 Million of the loan amount. For 2018, you will be limited to the interest on the first $750,000 of the loan amount.
The changes also have limited other deduction some of us have been taking. But you’ll need to speak with your CPA of your financial adviser to learn about that. After all, I am not a financial adviser. And I am not a CPA. And I do not play either of those parts on TV.
What I am is a Realtor.
And I can help you buy and / or sell a home. Your CPA or financial adviser cannot do that.
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