March has arrived along with the first signs of spring. That also means tax season is upon us. The April 15th tax filing deadline will be here before we know it!
As you prepare your 2019 taxes keep these housing-related items in mind.*
Home interest deductions
- Mortgages that closed before Dec. 14, 2017: A married couple filing jointly and single filers can deduct mortgage interest on a combined debt limit of $1 million.
- Mortgages that closed after Dec. 14, 2017: For both primary residences and second home loans, mortgage interest can be deducted on a combined debt limit of $750,000.
Property tax deductions
Also, taxpayers who itemize can only deduct up to $10,000 on a combination of state and local property, income and sales taxes.
Capital gains tax exclusions
Married-joint filers can exclude up to $500,000 and single filers can exclude up to $250,000 when selling their primary home, provided they’ve lived there two of the past five years.
Now, those are just a few of the key tax laws related to housing. Your tax advisor can provide you with specifics on these and many other requirements and how they apply to you.
Finally, f you have any real estate-related questions or if you know of someone who is interested in buying or selling a home, please contact me.
I look forward to helping you with all of your real estate needs.