Here is how the 2018 Tax Reform Affects you and Real Estate part 1

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Over the next 3 weeks, Here is the first of 3 emails detailing the impact or changes in previous laws that the new 2018 Tax Reform has had or will have on real estate. This could be for existing homeowners - or homeowners to be. We at The Atlanta Home Connection strive to keep our clients and consumers informed on this and other important real estate issues.

Mortgage Interest Deduction
The concern that the mortgage interest deduction (MID) would be eliminated, didn’t happen.
However, the bill has made the following changes:

• Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17 (from the existing $1,000,000). Current loans up to $1 million are grandfathered.
• Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount refinanced.
• Repeals deduction for interest paid on home equity debt through 12/31/25.
• Interest is still deductible on home equity loans if proceeds are used to substantially improve the residence.
• Interest remains deductible on second homes but subject to the limits.

Next week we will discuss how the new law affects your Property Taxes. 

Please visit us often for the most up to date information about real estate in metro Atlanta.

As always, please contact us anytime to help with anything real estate, with over 3 decades of experience in the metro Atlanta real estate market - we are your go to resource when you are thinking of selling or buying, or anything in between.Call or text us at 678-726-5470

-Jill Hoover

Information sourced from Keep Current Matters

This page is not meant to be a resource for tax advice but instead a resource for basic information concerning the aspects of the new tax code and how it may impact the real estate market. Our views herein provide broad guidance to the industry. The specific impact on each individual and property will vary. Therefore, your clients and customers should get tax advice from their accountants or financial advisors who will explain how the entire tax code will affect their personal returns.