You’ve likely heard about the new tax laws that were signed into law by President Donald Trump at the end of 2017. He has promised that many Americans will take home more of their paychecks, but what do these new laws mean for homeowners? Alufab USA takes a look at the updates that you need to know.
2017 tax laws and the changes homeowners need to know about
There are a number of factors that you’ll need to take into account including where you live, how the bill impacts your overall tax burden, and how much you are looking to spend on a home if you’re in the market. In short, some homeowners will find that their housing costs after taxes will be increased under the new law. This may mean that renting a home becomes a more attractive option. Initially, there may be a dip in home sales prices which could cause the market to dry up a bit.
Changes to Allowable Deductions
The maximum amount of mortgage interest you can deduct has been decreased from $1 million to $750,000. The amount of itemized deductions on state and local property taxes are now limited to $10,000; they were previously without limit. The standard deduction for taxpayers has doubled, making it $12,000 for individuals and $24,000 for couples. This means more taxpayers will take the standard deduction instead of itemizing.
It’s likely to take a little while for homeowners to figure out the new laws and how they will impact them. Most real estate professionals agree that the finalized tax law is better for homeowners than previous versions that were floating around. One of the best things about the bill for homeowners may be the fact that a married couple may exclude up to $500,000 of gain from taxation when selling a home, and an individual may exclude up to $250,000.
Reducing your home’s heating and cooling bills and protecting it from storm damage can still save you money.
Contact Alufab USA today at 239-842-7904.
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