If you are uncertain about your Homeowner Tax Deductions for your 2017 return, check out the link:
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Because of the wide tax changes recently passed, Homeowner Tax Deductions are a point of confusion regarding the 2017 tax return period. The thumbnail image above opens to a PDF file – Publication 530. This form is from the IRS on what homeowner expenses are allowed to be deducted this year. The sweeping tax changes passed by the House and Senate earlier this year apply to next year’s tax return. Therefore, carry on for this year as you always have. Refer to Publication 530 for all of the homeowner tax deductions you may or may not be aware of. Furthermore, always maximize your allowable deductions.
Tax Fact: Did you know if you are a member of the uniformed services and collect a military housing allowance receive that isn’t taxable, you still can deduct your real estate taxes and your home mortgage interest? You don’t have to reduce your deductions by your nontaxable allowance.
Looking Ahead to 2018:
After this filing year, homeowner tax deductions for certain types of home equity debt will be either scaled back or eliminated. Three important deductions to note are:
1) Less mortgage interest will be deductible. Taxpayers with mortgages taken out on or after Dec. 15, 2017, can deduct interest on mortgage debt that totals up to $750,000 (or $375,000 for married couples filing separate returns). Under prior tax law, these limits were higher: $1 million and $500,000, respectively. Taxpayers with mortgages taken out before Dec. 15, 2017, can continue to deduct interest on the higher amounts of mortgage debt, however.
2) Interest on home equity loans is no longer tax deductible. Before the changes in the tax code, taxpayers could deduct interest on home equity debt that totaled up to $100,000 (or $50,000 for couples filing separately).
3) Interest on home equity lines of credit (HELOCs) is no longer deductible. Under the prior tax code, taxpayers could deduct interest on home equity debt that totaled up to $100,000 (or $50,000 for couples filing separately). Such debt includes HELOCs.
Also important to note is that all of the newly passed tax changes expire Jan. 1, 2026.