You are not alone if. I’ve read many articles about the changes, and I was still confused until recently. I was at a meeting and some of the changes were explained to us – in English. Let me try to pass along what I have learned – in English.
First the standard deductions have been doubled. 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.
And if you had property taxes in excess of $10,000 you were able to deduct the entire amount of property taxes paid. In 2018 you will be limited to a maximum of $10,000
As to mortgage interest, you were previously 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 advisor to learn about that. After all, I am not a financial advisor. 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 sell a home. Your CPA or financial advisor cannot do that.
So if you are ready to purchase or sell a home, call me, Art Reiman, at 732-598-7700 or visit our web site, www 55PlusInMonmouth.com