Home Tax Deductions

Melissa Clary Tax, Tax Savings Strategies 0 Comments

Home Tax Deductions “Mortgage Interest” – New tax law imposes a lower dollar limit on mortgage qualifying for home mortgage interest deduction.  Starting this year taxpayers may only deduct interest on $750,000 of qualified residence loans.  This is down from the prior limit of $1 million.  Taxpayers can often still deduct interest on a home equity loan, home equity line of credit or second mortgage. However, the rules have changed in the Home Tax Deductions and you can only deduct interest that was used to purchase or improve your main home.  If you pulled money out and used the proceeds for personal expenses such as paying off student loans, credit cards, and/or personal expenses this is no longer tax deductible.  The old rules used to let you write off up to $100k of home equity lines that were used on anything real-estate related or not.

Property Taxes * As an itemized deduction state income taxes, sales tax, property tax and personal property tax is limited to a maximum amount of $10,000 which is a new tax law change.

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