The Mortgage Interest Deduction
The new tax bill passed by the president on Dec. 22 presents an array of interesting and exciting pathways for Bay Area homeowners and home buyers.
For example, the lower cap on the mortgage interest deduction lowers the amount of mortgage debt taxpayers can deduct on their income taxes to $750,000. Fortunately, buyers who purchased their home prior to Dec. 15, 2017 will be “grandfathered” in and able to continue deducting the interest they pay on mortgage debt of up to $1 million.
Some housing analysts believe the new rules will remove incentives for homeownership. However, low interest rates, an exhilarated stock market, healthy demand for housing in our part of the world, and a booming Bay Area job market give us no indication that demand for housing here will not continue to be very strong.
This article provides generic information from third party sources about changes in the Federal tax law which have not and will not be verified by Broker, who is not qualified to give tax advice. The applicability of that information to any given individual is unknown. If you have questions or concerns regarding legal or tax issues in general, or as it relates to your situation, you must consult with your own qualified California real estate attorney and/or tax advisor.