March has arrived and with the first signs of spring, we’re reminded that tax season is upon us and the April 15 tax filing deadline will be here before we know it. As you prepare your 2019 taxes—if you haven’t already done so—here are a few housing-related items to keep 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.
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.
Those are just a few of the key tax laws related to housing, and your tax advisor can provide you with specifics on these and many other requirements and how they apply to you.
If you have any real estate-related questions or if you know of someone who is interested in buying or selling a home, please do not hesitate to contact me. I look forward to helping you with all your real estate needs.