New United States Tax Law (Part 2)

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.