What Homeowners Need to Know About the New Tax Laws
The new tax law signed into effect at the end of 2017 should provide most Americans - and homeowners - an overall tax cut, largely due to the increased standard deduction and lower marginal tax rates. To offset the cost of these cuts, Congress curtailed some provisions that specifically benefit homeowners, like deductions for mortgage interest and state and local taxes.
One of the biggest changes in the new tax code is the increased standard deduction from $6,350 to $12,000 (or $24,000 for couples), which eliminates the need for homeowners to itemize their deductions. On the flip side, the new law caps the amount of deductible property and other state and local taxes at $10,000, which will have a greater effect in states like California and New York where property taxes are higher.
At Teresa Cowart Team, we work with a team of local financing experts that will help guide you through the home buying process. They’re here to answer your questions so you can find the right loan program that works for you. Ready to buy a home? Contact us to be connected with a member of our team.
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