AGENT INSIGHT
TAX REFORM GUIDE
Inside Intro Page 1-2
Energy efficiency Page 9
Tax Reform: Impact to Realtors Page3
Historic tax credit Page 10
Tax brackets Page 4 Property Taxes Page 5
Moving expenses Page 11 Casualty losses Page 12
MID Page 6
10 Tax Deductions for Homeowners Page 13
PMI Page 7
Gateless Takeaways Page 14
HELOC Page 8
Contributors Page 15
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Introduction Homeownership is part of the American Dream and for years the federal government has been subsidizing that dream in the way of tax deductions for homeowners. Those days are coming to an end. The Tax Cuts and Jobs Act ushers in sweeping changes to the U.S. tax code. Not only does it cut the corporate rate from 35 percent to just 21 percent, it restricts every tax advantage that homeowners have depended on for years. As the National Association of Realtors put it, “the final bill diminishes the tax benefits of homeownership and will cause adverse impacts in some markets.” To be sure, the federal government has a long history of providing tax incentives to homeowners. The Mortgage Interest Deduction, the state and local property tax deductions (SALT), private mortgage insurance deduction as well as rules that allow foreclosed homeowners to circumvent tax penalties; federal policy has always been on the side of the property owner. Realtors stand at the forefront of the homeownership struggle. Policy affecting buyers, sellers and renters always impacts Realtors. With Tax Reform, experts are projecting home sales will slow, home price appreciation will tapper and inventory will continue to struggle. Think of the current homeowners in San Francisco where the median
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home price is over $1 million. Right now, their mortgage is grandfathered in to the previous mortgage interest deduction provisions. The new law caps mortgage interest deductions at $750,000 in mortgage debt. That gives those homeowners no reason to sell and buy up. Also, under the new law, homeowners will no longer have the unlimited ability to deduct property taxes from their federal returns. Those deductions are being capped at $10,000, regardless of location, purchase price or median home sales in the area. For coastal areas, and high tax states like Illinois, those homeowners are likely to see a tax increase even though the Tax Reform bill cuts the individual tax rates, albeit temporarily.
The Standard Deduction Doubles The recent tax reform bill has significantly increased the standard deduction. It has also decreased the number of itemized deductions that are allowed. These factors combined mean more taxpayers will likely take the new, higher standard deduction. SINGLE MARRIED FILING JOINTLY MARRIED FILING SEPARATELY HEAD OF HOUSEHOLD PERSONAL EXEMPTION* $24,000 25k 20k 15k 10k 5k 0
$18,000 $12,700
$12,000 $12,000
$18,000 $6,350 $6,350 $4,050 2017
2018
*The Personal Exemption was eliminated by the new tax law.
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Introduction Part II Yes, most everyone gets a tax cut from this new bill. The top rate is slashed to 37 percent, from 39.6 percent and those earning from $38,700 to $82,500 will get a 3 percent tax cut. See the full chart on page 4 detailing the new tax brackets. But the details matter. The new law eliminates personal exemptions. In prior years, filers could deduct $4,150 for themselves, and their spouse. Without it, some filers may see higher tax bills even with the larger standard deduction, according to NAR.
Likewise, according to news accounts, in the District of Columbia, homeowners rushed to prepay $50 million in property taxes to try to take advantage of those uncapped property tax deductions for the last time.
The new standard deduction has just about doubled. It’s now $12,000 for singles and $24,000 for joint filers. “By doubling the standard deduction, Congress has greatly reduced the value of the mortgage interest and property tax deduction as tax incentives to homeownership,” according to NAR. Because the standard deduction is so large, most filers will not itemize which means they will no longer get to use what remains of the mortgage interest deduction or the property tax deduction. In essence, “there will be no tax differential between renting and owning for more than 90 percent of taxpayers,” according to an NAR report.
»» Buying a home is still a smart decision. Homeowners have a higher net worth than renters (about 40 times more), according to David Bach, co-founder of AE Wealth Management.
While these changes may take years to fully realize, what we do know now is that real estate sales in Manhattan have already been negatively impacted by fear surrounding the law, according to published news accounts. The average home price in New York City dipped below $2 million for the first time in two years while home sales dropped 12 percent, according to Douglas Elliman, a residential brokerage.
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The new tax laws take effect for the 2018 tax filing year and expire December 31, 2025. For the most part, these new provisions do not impact the 2017 tax filing season.
Here’s the bottom line:
»» Homeowners are still allowed to keep the first $250,000 in profit when selling their home, if they’re single, it’s $500,000 for married owners. »» Discount points, or pre-paid interest, is still generally tax deductible however one would have to itemize to get it.
“...THERE WILL BE NO TAX DIFFERENTIAL BETWEEN RENTING AND OWNING FOR MORE THAN 90 PERCENT OF TAXPAYERS.” -NATIONAL ASSOCIATION OF REALTORS
»» Real estate agents should not give financial or tax advice, but you should understand the new tax laws. This eBook is designed to help you make sense of it and to encourage you to seek the advice of a professional tax advisor for the most reliable information about Tax Reform. ————————————————————————————————————— Always consult a tax professional for the most accurate and up to date advice.
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Tax reform impact: Real Estate Agents Most real estate agents are independent contractors. They work with a brokerage, but they are not W2 employees. This dynamic means agents often create a separate business so they are paid as a Limited Liability Company (LLC), S Corporation, Personal Service Corporation or some other business entity. Tax Reform could make incorporating a necessity for every real estate professional. Because the corporate tax rate was slashed to 21 percent and includes a 20 percent deduction for business income, Realtors could position themselves to benefit greatly from these tax law changes. Of course, not every provision benefits real estate professionals. Client appreciation dinners and parties may become a thing of the past now that the new tax law eliminates that form of entertainment as a tax deduction. Still, there are numerous changes worth exploring with your tax professional. Here are some highlights:
Pass-Through Income
Entertainment Expenses
Auto Depreciation
Thanks to NAR lobbying efforts, Realtors were given a personal service income exception in the final tax bill. This allows real estate agents to qualify for the 20 percent passthrough business deduction.
Agents usually budget a significant share of their commission income to market for new business. Tax Reform eliminates the entertainment, amusement or recreation tax deduction. It also eliminates the ability the deduct membership dues “to any club organized for business, pleasure, recreation or other social purpose or a facility or portion of a facility used in connection with [those items],” according to NAR. That means MLS dues, NAR dues, client-appreciation parties and gifts may no longer be tax deductible.
Most real estate agents depend heavily on their cars to transact business. Most agents use their cars to show properties. Tax Reform significantly increases the firstyear depreciation on cars used for business purposes, according to NAR. Now, agents can claim a $10,000 depreciation in the first year; $16,000 in the second; $9,600 in the third and $5,760 in the fourth and later years.
Essentially, if you earn less than $157,500 (single) or $315,000 (married filing jointly), you can probably claim the full 20 percent tax deduction under the personal service income exception. This deduction is a significant up-front “above the line” deduction for business income.
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——————————————————————————————— Always consult a tax professional for the most accurate and up to date advice.
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2018 income tax rates and brackets
SINGLE
2018 TAX RATE
SINGLE
MARRIED FILING JOINTLY
MARRIED FILING SEPARATELY
HEADS OF HOUSEHOLDS
10%
$0 – $9,525
$0 – $19,050
$0 – $9,525
$0 – $13,600
12%
$9,525 – $38,700
$19,050 – $77,400
$9,525 – $38,700
$13,600 – $51,800
22%
$38,700 – $82,500
$77,400 – $165,000
$38,700 – $82,500
$51,800 – $82,500
24%
$82,500 – $157,500
$165,000 – $315,000
$82,500 – $157,500
$82,500 – $157,500
32%
$157,500 – $200,000
$315,000 – $400,000
$157,500 – $200,000
$157,500 – $200,000
35%
$200,000 – $500,000
$400,000 – $600,000
$200,000 – $300,000
$200,000 – $500,000
37%
$500,000+
$600,000+
300,000+
$500,000+
MARRIED FILING JOINTLY
MARRIED FILING SEPARATELY
HEADS OF HOUSEHOLDS
$650K $600K $550K $500K $450K $400K $350K $300K $250K $200K $150K $100K $50K $0
10%
12%
22%
24%
32%
35%
37%
2017 income tax rates and brackets 2017 TAX RATE
SINGLE
MARRIED FILING JOINTLY
MARRIED FILING SEPARATELY
HEADS OF HOUSEHOLDS
10%
$0 – $9,325
$0 - $18,650
$0 – $9,325
$0 – $13,350
15%
$9,325 – $37,950
$18,650 – $75,900
$9,325 – $37,950
$13,350 – $50,800
25%
$37,950 – $91,900
$75,900 – $153,100
$37,950 – $76,550
$50,800 – $131,200
28%
$91,900 – $191,650
$153,100 – $233,350
$76,550 – $116,675
$131,200 – $212,500
33%
$191,650 – $416,700
$233,350 – $416,700
$116,675 – $208,350
$212,500 – $416,700
35%
$416,700 – $418,400
$416,700 – $470,700
$208,350 – $235,350
$416,700 – $444,550
39.6%
$418,400+
$470,700+
$235,350+
$444,550+
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Property taxes One of the many tax benefits that homeowners have long enjoyed is the ability to deduct their state and local taxes, also known as the SALT deductions, from their federal returns. In many high-tax coastal states like New York and California, this deduction was one way to offset record high property costs. The new tax law upends this rule. Sure, homeowners can still deduct SALT, but now there’s a $10,000 limit – and that includes not just state and local property taxes, but income and sales taxes too. That means homeowners living in high cost areas like Manhattan or San Francisco may see a tax hike. Nationally, about 4 million American’s pay more than $10,000 a year in property taxes, according to ATTOM Data Solutions.
NEARLY 4 MILLION AMERICANS PAY MORE THAN $10,000 A YEAR IN PROPERTY TAXES
Old Law
New Law
The U.S. tax code has allowed unlimited state and local property tax deductions since the Civil War era. These deductions became linked to the benefits of homeownership. Yet, those deductions didn’t benefit all Americans equally. According to the IRS, California, New York, New Jersey, Pennsylvania, Texas and Illinois claim more than half the value of all state and local tax deductions.
Limited to $10,000 cap on state and local property tax deductions. Change applies to 2018 to 2025.
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What you need to know »» Starting with the 2018 tax year, any combination of state, local, income and sales tax deductions will be capped at $10,000. ————————————————————————————————— 2
Always consult a tax professional for the most accurate and up to date advice.
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Mortgage Interest Deduction (MID) For a very long time, homeowners enjoyed the right to deduct interest paid on their mortgage on their federal tax return. With Tax Reform, most homeowners will still enjoy that right, however, now it’s capped. Those with mortgages below $750,000 can still deduct mortgage interest. Likewise, those who owned a home with a mortgage before December 2017 can also deduct interest. For everyone else, here are the changes.
The old law Mortgage interest paid is tax deductible if the total primary mortgage balance is $1 million or less for married taxpayers filing jointly or $500,000 or less for single and married filing separately taxpayers.
The new law The mortgage interest deduction initially appeared to be expiring for the 2017 tax year. However, on February 21, 2018, the IRS confirmed that the deduction had been retroactively renewed for 2017 taxes. But there’s a catch. The deduction remains the same as it was in 2016 for mortgages taken out before December 15, 2017. For mortgages taken out on December 15, 2017 or later, new limits apply. The new limits also apply for tax year 2018.
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For mortgages taken out in the last 17 days of 2017 and all of 2018, mortgage interest is deductible if the total primary balance is $750,000 or less (married filing jointly) or $375,000 or less (single or married filing separately).
What you need to know Many argue that the MID is no longer necessary because the new tax laws increased the standard deduction to $24,000 for married filing jointly taxpayers and $12,000 for single and married filing separately taxpayers. If total itemized deductions don’t return as much as the standard deduction would, the MID benefits are mostly muted. Nevertheless, the MID can be a substantial deduction and homeowners should consider using it, regardless of filing status. —————————————————————————————————
MID Tips
When talking to clients about these new changes to the tax code, remember these tips: If they closed on or before December 14, 2017:
No changes
If they closed on or after December 15, 2017:
New MID limits take effect
Married filing jointly:
Mortgage balance is $750,000 or less Single or married filing separately:
Mortgage balance is $375,000 or less
https://www.irs.gov/newsroom/three-popular-tax-benefits-retroactively-renewed-for2017-irs-ready-to-accept-returns-claiming-these-benefits-e-file-for-fastest-refunds 1
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Always consult a tax professional for the most accurate and up to date advice.
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Private Mortgage Insurance (PMI) Private Mortgage Insurance (PMI) protects banks, not borrowers. It reimburses banks if a house goes into foreclosure even though borrowers pay that insurance premium. For some borrowers who put down less than 20 percent, PMI is required. Since PMI has been tax deductible, many homeowners didn’t mind paying the additional cost. Initially, the PMI deduction appeared to be expiring for the 2017 tax year, but on February 21, 2018, the IRS confirmed that the PMI deduction has been retroactively renewed for 2017 taxes.1
The old law More than a decade ago, Congress enacted tax laws that benefited homeowners allowing those who put down less than 20% to deduct the private mortgage insurance premium. That law expired at the end of 2016.
PMI IS STILL TAX DEDUCTIBLE
The new law Tax Reform retroactively extended the PMI tax deduction for 2017. Homeowners earning an adjusted gross income of $100,000 or less, can write off PMI on their primary mortgage. That ability to deduct PMI, decreases to zero with incomes up to $110,000.
have lots of low-down payment mortgage options that do not include PMI. It’s important to talk to your Guaranteed Rate loan officer to learn about 10% down options that do not include mortgage insurance, regardless of income.Your clients have options to avoid paying PMI altogether. If your client’s house has appreciated, they might want to refinance to remove PMI.
What you need to know
While PMI is tax deductible for borrowers with incomes less than $100,000, what about the buyers who purchase higher priced homes? Guaranteed Rate offers multiple jumbo loan options for that scenario. Flex Power, a jumbo loan program, allows buyers to put down 10% on loans up to $3 million with no PMI. Ask your Guaranteed Rate loan officer for details.
PMI is still tax deductible for the 2017 tax year, according to the IRS. However, homebuyers
————————————————————————————————————— Always consult a tax professional for the most accurate and up to date advice.
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Home Equity (HELOC) When the assessed value of your house is higher than the principal amount left to pay on your mortgage, you have home equity. You can borrow against the difference with either a home equity loan or a home equity line of credit (HELOC). A home equity loan is a lump sum distribution paid back at a fixed interest rate. A HELOC allows you take money multiple times up to a maximum amount. The interest you pay on the equity you borrow is tax deductible. The Tax Cuts and Jobs Act of 2017 changed many facets of federal taxes, including deducting interest paid on a HELOC or home equity loan.
The old law Interest paid on a HELOC or home equity loan was tax deductible up to certain total loan amounts. The total of the primary mortgage balance and the home equity loan or HELOC had to be one of the following: »» $1 million or less (married taxpayers filing jointly) »» $500,000 or less (single and married taxpayers filing separately)
The new law The HELOC and home equity loan interest deduction was set to expire in the 2017 tax year. However, on Febru-
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ary 21, 2018, the IRS confirmed that the deduction was retroactively renewed for 2017 taxes at the same limits as 2016. The Tax Cuts and Jobs Act changes the dollar limits moving forward. Starting 2018, the total of the primary mortgage balance and the home equity loan or HELOC has to be one of the following: »» $750,000 or less (married taxpayers filing jointly) »» $375,000 or less (single and married taxpayers filing separately) Here’s the rub, the home equity loan or HELOC must also be used to “buy, build or substantially improve the taxpayer’s home that secures the loan,” according to the IRS.
paid on a HELOC and home equity loans as expenses, but at lower limits starting in 2018. »» As of this publication, the IRS has not clarified what qualifies as a “substantial improvement.” »» Cash-out refinancing is another way to use home equity. Cash taken out from refinancing is not taxed as income. However, the funds must be used to “buy, build or substantially improve the taxpayer’s home.” In 2017, homeowner equity reached levels not seen since the 2006 housing peak.1 A home equity loan or HELOC could be an excellent way for clients to reinvest in property or even secure a down payment on another home.
What you need to know
——————————————————————————————— 1 “Housing Outlook 2018” by Chrystal Caruthers. Read the article at Gateless.com; under the “Manage Your Business” menu, select “Articles
»» Your clients can deduct interest
Always consult a tax professional for the most accurate and up to date advice.
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Energy efficiency Homeowners have been conditioned to choose energy-efficient products. We’ve switched to CFL lightbulbs, bought Energy Star appliances and replaced old, drafty windows. Saving energy is synonymous with saving money. In 2016, more than 79,000 homeowners retrofitted their homes with Energy Star products, a government-backed symbol of energy efficiency. And, since 1992, Americans have saved $430 billion on their energy bills, according to Energy Star. Americans have been incentivized with rebates and tax breaks to choose efficiency, however, the tide is turning. New laws scrap entirely, or drastically reduce, those incentives.
Old Law The American Recovery and Reinvestment Act of 2009, also known as “The Stimulus Bill” provided homeowner tax credits for energy efficiency improvements made to primary residences. Eligible upgrades included HVACs, water heaters, windows, insulation and roofs. Those tax credits expired December 2016 and were not extended.
New Law The Tax Cuts and Jobs Act, also known as Tax Reform, eliminated most energy efficiency credits. The Bipartisan Budget Act of 2018 (BBA) extended some credits. Think solar. The BBA specifically includes tax credits for solar water heaters and solar panels. It also provides for small wind energy, geothermal heat pumps and fuel cell upgrades. These credits can be claimed on your 2017 tax return. Federal tax credits covering the cost to purchase and install these systems are in effect through December 2021. Local rebates should
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always be researched. Visit the Energy Star website (https://www.energystar.gov/rebate-finder) to locate zip-code based savings. Your local utility company may also provide rebates and discounts on energy efficient upgrades.
What you need to know »» Homeowners may be able to take a credit of 30% of qualified solar, wind turbine and geothermal upgrades, including installation. »» Solar energy tax credits are not restricted to your primary residence. It can include a second home. »» If you made energy-efficient upgrades and failed to itemize those credits, 2017 is your last chance to do so. However, the IRS provides the following guideline: “If the total of any nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you generally can’t take the credit in 2017.”
THIS IS THE LAST YEAR YOU CAN DEDUCT MOST ENERGY EFFICIENT UPGRADES
————————————————————————————————— 2
Always consult a tax professional for the most accurate and up to date advice.
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Historic tax credit Since 1976, the Federal Historic Preservation Tax Credit offered two different incentives for renovating buildings. Described as one of the most successful and cost-effective community revitalization programs, it rewarded private developers for investing in real estate. The Tax Cuts and Jobs Act eliminated one incentive and drastically impacted the other. Future rehabilitation projects could be impacted.
THE NEW LAW ELIMINATES THE 10% TAX CREDIT FOR NON-HISTORIC BUILDINGS
Old Law
credit is now paid over five years instead of one.
The historic preservation tax credit provided a 20 percent lump sum payment to rehab a building listed in the National Register of Historic Places, according to National Park Service, which administers the program. The 20 percent tax credit would then be claimed the tax year the rehabbed building was completed and ready for occupancy. This credit was only for income producing properties.
What you need to know
There was also a 10 percent tax credit available for the cost of rehabbing any commercial or income-producing building that was built before 1936.
»» Some states are attempting to pass legislation to combat the changes made to historic tax credits. For example, Wisconsin lawmakers passed a bill increasing the limit on tax credits for historic renovation projects from $500,000 to $3.5 million. Check with your state to find out if your developers can claim local tax incentives.
New Law The Tax Cuts and Jobs Act eliminates the 10 percent tax credit for non-historic renovations. Historic tax credits still exist, with one significant change: The 20 percent reimbursement
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»» Developers claiming the historic renovation tax deduction won’t get that 20 percent lump sum reimbursement if rehab wasn’t complete, and the building wasn’t occupied, by December 31, 2017. »» The new law spreads the 20 percent reimbursement over five years.
————————————————————————————————— Always consult a tax professional for the most accurate and up to date advice.
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Moving expenses Relocating for a new job isn’t easy, but one of the benefits of a work-related move has been the ability to claim moving expenses on your tax return. While these credits are still allowed for the 2017 tax filing season, they won’t be around much longer.
Old Law Federal tax laws allowed taxpayers to deduct reasonable moving expenses such as clothing, furniture, and appliances. The cost of travel from your old home to your new home and the cost of lodging (excluding meals), according to the IRS. However, the IRS had three requirements: »» The move had to closely relate, in time and place, to the start of work at your new job. »» The new job had to be at least 50 miles from your old home. For example, if your commute from your old home to your old job was 5 miles, then the distance from your new job location to your old home must be at least 55 mile »» You had to work full-time for at least 39
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weeks during the first 12 months after moving to your new job location.
New Law The Tax Cuts and Jobs Act eliminates these deductions entirely until 2025, starting with the 2018 tax year. The good news is you can still claim moving expense deductions on your 2017 tax return if you meet the criteria above. The lone exception to the new law is military members on active duty who are moving to pursue a military order.
THE NEW LAW ELIMINATES TAX DEDUCTIONS FOR MOVING EXPENSES
What you need to know The 2017 tax year is the final year to claim deductions for a work-related move ————————————————————————————————— Always consult a tax professional for the most accurate and up to date advice.
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Casualty losses Casualty losses on personal property result from an unexpected event. These unfortunate occurrences include natural disasters, fires, vandalism and theft. Casualty loss deductions aren’t being eliminated by the Tax Cuts and Jobs Act, but the requirements allowing taxpayers to claim such losses will change in 2018.
NOW, HOMEOWNERS CAN ONLY CLAIM LOSSES IN FEDERALLY DECLARED DISASTER AREAS
Old Law
What you need to know
Previous property tax laws allowed taxpayers to itemize deductions for casualty losses caused by natural disasters, fires, thefts or other events that aren’t reimbursed by insurance. Total losses had to be more than 10 percent of your adjusted gross income, according to H&R Block.
»» A homeowner will only be able to deduct property damages that weren’t reimbursed by insurance if they were caused by a disaster declared by the president of the United States.
New Law The Tax Cuts and Jobs Act will repeal some of these deductions in 2018, but the new legislation won’t change how you file claims for casualty losses on your 2017 tax returns. Starting with the 2018 tax year, homeowners will only be allowed to deduct property losses located in a federally declared disaster area. There were 137 federally declared disasters in 2017, according to the Federal Emergency Management Agency (FEMA). This new legislation lasts through 2025.
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»» For example, a taxpayer living in California who suffered property damage during the wildfires that ravaged parts of the state in December 2017 would be able to claim the losses on their tax return. President Donald Trump approved the major disaster declaration for California homeowners affected by the fires on January 2, 2018. »» However, homeowners in flood zones won’t be able to deduct property damages if the losses weren’t caused by a federally declared disaster. ————————————————————————————————— Always consult a tax professional for the most accurate and up to date advice.
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10 tax deductions for homeowners As tax time approaches, homeowners are bracing for a flurry of changes. Congress passed the “Tax Cuts and Jobs Act” last year which overhauled the tax code. To be sure, there are winners and losers, but homeowners have always counted on several money-saving tax provisions like the mortgage interest deduction and state property tax deductions. The good news is that none of the new tax reform rules go into effect for the 2017 taxable year. *Always consult a certified tax professional.
Home improvement
New roof, windows and furnace are big ticket items that are deductible when you sell your home in the future.
Energy Efficiency
Adding solar panels can help to reduce your carbon footprint as well as your tax bill.
State and Local Taxes
Moving Expenses
Home Office
If you regularly work from home and have an area that is exclusively used for work, that space can be deducted.
Homeowners can still deduct their entire local and state property tax bills from their income taxes. The new tax law caps that deduction at $10,000 next year.
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Closing Costs Historic Tax Credit
Rehabbing a landmark? Apply those deductions while you can. The new tax law repeals the 10% tax credit for pre-1963 buildings.
Private Mortgage Insurance (PMI)
If you’re single and make less than $54,000, you can deduct PMI. Married couples filing jointly earning up to $109,000 can still deduct it.
Casualty Losses
Mudslides, wildfires, hurricanes and other natural disasters can cause major property damage. This year, those loses are deductible. The new tax law limits these deductions to presidentially-declared disaster areas only.
If you’re moving for a job and need to sell your house, those moving expenses are still tax deductible. The new tax law repeals this deduction.
No one likes fees but paying discount points to get a lower mortgage interest rate is tax deductible.
Mortgage Interest Deduction (MID)
If you already have a mortgage of $750,000 or more, you’re grandfathered in and can still deduct your mortgage interest. The new law affects new buyers only capping MID at $750,000.
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Gateless takeaways »» The 20 percent Pass-through income deduction could benefit real estate agents
»» With the increased Standard Deduction, most filers will not itemize making the MID obsolete
»» The automobile depreciation schedule has increased significantly
»» Property Tax deductions are now capped at $10,000
»» Entertainment and member dues are no longer tax deductible
»» PMI is still tax deductible
»» Most tax payers got a lower tax rate with the passage of the Tax Cuts and Jobs Act »» The Standard Deduct doubled
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»» HELOCs are still tax deductible IF the money is used to significantly improve the primary residence »» Moving expenses are no longer tax deductible for most Americans
»» Homeowners can no longer claim casualty losses unless sanctioned by presidentially -declared federal disaster area »» The 10 percent historic tax credit was eliminated »» Most energy efficiency upgrades are no longer tax deductible ——————————————————————————————— 2 Always consult a tax professional for the most accurate and up to date advice. Agent Insight Sources: National Association of Home Builders, Freddie Mac Housing Outlook, U.S. Department of Commerce, ATTOM, Gateless top agent videos, The Internal Revenue Service
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Contributors
Gateless is a team of newspaper industry expats who enjoy creating content that connects real estate professionals to Guaranteed Rate loan officers.
Chrystal Caruthers
Matt Barbato
Jake Newton
Director of Content Writer | Editor @ChCaruthers
Copywriter @RealMattBarbato
Graphic Design Specialist @JNewt
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Colin Milroy Freelance Copywriter @colinmilroy
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About Gateless
Gateless was created with one goal in mind: to help real estate professionals across the country grow their businesses. We are your go-to resource for all things real estate and take pride in being the greatest coaching website on the planet. Gateless is a division of Guaranteed Rate, a mortgage industry leader.
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