Commentary Mortgage Tax Reform - Digital

TAX MANAGEMENT

ECONOMIC & MARKET INSIGHTS

Q. WHAT SPECIFICALLY DOES THE NEW TAX REFORM BILL MEAN FOR HOMEOWNERS? A. The president signed into law the tax reform bill in late December, and it contains provisions that could be broad- reaching in scope for taxpayers at many levels. Among the changes are several impacts for homeowners. With $448 billion in home equity loans outstanding at the start of 2017 and $13 trillion in mortgages outstanding, 1 many home-owners will be affected. Q. I AM THINKING ABOUT PURCHASING A NEW HOME IN 2018. WILL THE INTEREST ON THE MORTGAGE STILL BE DEDUCTIBLE? A. It depends on the amount of the mortgage. Interest associated with loans up to $750,000 is still deductible. Q. WHAT IF I PURCHASED A HOME IN 2017 WITH A MORTGAGE OF $1 MILLION? WILL I NOT BE ABLE TO FULLY DEDUCT THE INTEREST SINCE IT IS ABOVE THE NEW LIMIT OF $750,000? A. Mortgages incurred before December 15, 2017 will

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