Hey friends! My blog will have all kinds of different content - sometimes random thoughts, sometimes real estate, sometimes businesses. As a native of Birmingham, I hope to provide a unique perspective and maybe a different view to the Magic City!
The Tax Cuts and Jobs Act (commonly known right now as the GOP tax plan) is one of the most significant pieces of legislation in the last 30 years. While I would advise you to talk to your tax professional, here are some of the major impacts the legislation will have on the housing market:
If you have a secondary loan in the form of a home equity line of credit (HELOC), you will no longer be able to deduct that interest if you itemize your deductions. This is related more to how the money is used - you should still be able to deduct interest if you used it to acquire, construct, or substantially improve a property. However, if you go on vacation with that money, buy a car, etc. it is considered "non-acquisition debt" and is not deductible. Again, consult your tax professional.
Starting December 14, 2017, deductible mortgage debt is reduced from $1,000,000 to $750,000. If you acquired a primary or secondary property before this date, you are "grandfathered" in.
The new deduction limit is $10,000 on state and local taxes. Under the old code, there was no limit. This will affect areas will higher home prices.
if you are a current or prospective home owner, again, you should contact your local tax professional. While there are some changes to the current tax code, the core benefits (tax benefits and otherwise) of home ownership remain the same.
Hey friends! My business of the week is Lakecrest Chiropractic. If you have a nagging injury or been in a car wreck (like I have), maybe you should check them out! I've known Drew and Amanda since before they were married. I can attest that they care about your health!