The Tax Laws Pertaining to Mortgage Interest
Filed under: Mortgage News
Tax day is looming, so many people are looking at their tax burden and wondering what can be done for tax strategy going forward. One of the main questions that keeps coming up is whether there are any tax benefits left for homeowners now that the new tax laws are in place.
First of all, it is important for me to point out that I am not a CPA. Your best solution is to talk to a tax pro who can provide recommendations regarding your financial circumstances. But as a loan officer, I have a general understanding of a few things you might need to know about homeownership and taxes.
Big Picture Tax Changes
A few big-picture details that changed with the new tax laws. For example, the maximum you can write off is the mortgage interest on a loan that is $750,000 or less. This number is down from $1 million that was previously written into the tax laws.
Also, one point of good news with these tax law changes is that the standard deduction was doubled-up for married couples, so it is now $24,000. In some cases, especially if you have a smaller mortgage, you probably won’t hit a high enough deduction for it to make sense to itemize. So, you can take advantage of the higher standard deduction and simplify your tax filing. If you have a larger mortgage, then talk to your accountant to see if it would be better to itemize so that you can maximize the deductions that are available.
Bottom Line: Tax Benefits are Available
What it all comes down to is that there are still tax benefits available for homeowners. It is well worth a look at the interest write-off options so that you can minimize your tax burden each year. If you have questions about your options, then the best thing that you can do is talk to industry professionals: an accountant and your loan officer to understand how buying a home can be beneficial for your taxes. If you would like personal recommendations, then you are welcome to reach out to Bill Provost at Franklin Loan Center any time for more information (425) 241-1922.
