We are continuing our discussion of the new United States Tax Law as it applies to individuals. You can view our last week’s post here: New United States Tax Law (Part 1).
Below are some more highlights of the tax change:
Mortgage Interest Deduction is limited to $750,000 for primary and secondary home on mortgages obtained after 12/15/2017. The limit is $1,000,000 for old mortgages obtained prior to 12/15/2017.
Home equity interest deduction is not allowed. Note: The interest on Home Equity debt used to acquire, construct, or improve your primary residence or vacation home is still allowed to the extent it does not exceed $750,000. This applies to Home Equity obtained after 12/15/17 and used to acquire, construct or improve your primary residence of vacation home. For Home Equity debt obtained prior to 12/15/17, the limitation is $1,000,000.
Moving expense deception is no longer allowed.
Casualty loss deduction is no longer allowed except in Presidential declared disaster area.
Medical expenses deductions, adjusted gross income threshold, reduced from 10% to 7.5%, but only for the years 2018 & 2019.
Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon.