While you may still be busy filing your 2017 taxes, it’s important to look ahead and be aware of how the new 2018 tax reform laws will affect next year’s return–especially if you’re a homeowner. Those who itemize will need to note some big changes in what they can and cannot deduct. Many will instead choose to use the new higher standard deduction ($12,000 for single individuals and $24,000 for joint returns) rather than itemizing their deductions.
What can you do now? Check in with your accountant for advice specific to your situation and filing status. Also, you’ll probably want to update your withholding amount to reflect the new deduction amounts. In the meantime, here is the skinny on 5 changes that may affect you if you own a home…
1. Mortgage Interest Deduction
The deduction that allows homeowners to reduce their taxable income by the amount of mortgage interest they pay has been scaled back.
- For loans taken out after 12/14/17, you can now only deduct mortgage interest paid on the first $750,000 of combined debt for primary and secondary residences (or $375,000 if married filing separately).
- Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap if they were taken out before 12/15/17 (or if you entered into your purchase contract prior to 12/15/17 and the sale closed by 1/1/18).
- You can continue to deduct the interest on grandfathered loans even if you refinance.
2. Home Equity Loan Deduction
Under the former tax law, you were able to deduct the interest on up to $100,000 of home equity debt even if the proceeds were used for something other than buying or improving the home (for example, an equity line of credit used to pay college tuition). This is now no longer the case.
- New 2018 law eliminates the deduction for interest on home equity debt unless it’s used to buy, build, or substantially improve the home that secures the loan.
- Loans to buy second homes do not qualify for the interest deduction if they’re taken out against the equity of your primary home.
3. Deduction for Property & Sales Taxes
Tax relief for homeowners who pay property taxes has also been limited.
- Itemized deductions for property taxes, sales taxes, state income taxes, and any other local taxes will now be limited to a combined total of $10,000.
- The combined limit drops to $5,000 if married filing separately.
4. Deduction for Moving Expenses
While you used to be able to deduct some moving expenses when you moved for a new job, this deduction has been repealed for everyone except active-duty members of the armed forces.
5. Deduction for Casualty Losses
Under former law, substantial losses to your home and personal property through things like fires and robberies could be deducted from your taxable income. Under the new law, this deduction is eliminated for everything except presidential-declared natural disasters.
Want to know more?
- New Tax Brackets and Standard Deductions
- How the Reform Might Affect Home Values
- Provisions Affecting Commercial Real Estate
The above article is presented for informational purposes only and is not intended to replace professional tax advice from your accountant.
“The Tax Cuts and Jobs Act – What it Means for Homeowners and Real Estate Professionals,” by the National Association of Realtors
“5 Homeownership Changes Coming Under New Tax Law” by NerdWallet
“Tax Reform” by the Internal Revenue Service
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When buying a home, there are some things you should never compromise on-or you’ll likely regret your home purchase, according to Realtor.com
- The floor plan. It is difficult and expensive to reconfigure a home’s floor plan. If a home doesn’t have the minimum number of rooms or the flow of the main living areas you want, you should cross it off your list.
- The school district. You should carefully consider your neighborhood school district, and even get a map of its exact boundaries to make sure your home is within the correct district.
- The neighbors. You should pay attention to the condition of neighboring homes. Not only do you have to live with your neighbors on a daily basis, but they can affect your home’s future resale value too.
- The budget. Consider all the expenses-monthly mortgage payments, homeowner association dues, utility costs and real estate taxes-beyond the list price to make sure you’ll be financially comfortable.
- The commute. Test-drive the route between your home and office to be certain you’re willing to make the commute every day.
Our market has no shortage of qualified buyers and properly priced, listings in most area are selling quickly. In some neighborhoods, homes are selling, on average, in less than 30 days.
The South Lake Union-based e-commerce giant announced the plans in January to add more than 100,000 full-time employees in the U.S by 2018. Most of them will be in fulfillment centers, though some will be headquarters jobs in Seattle. There are 9,700 job positions in Seattle listed on Amazon’s job page.
Amazon has about 40,000 Washington State employees in corporate offices and fulfillment centers. The company will have more than 30 buildings totaling more than 10 million square feet in downtown Seattle when its ongoing expansion is completed.
The company said its plans to increase its full-time US workforce to more than 280,000 by mid 2018 from 180,000 in 2016.
Contact me for seeing condos and homes for sale in Seattle.
sources: Puget Sound Business Journal Feb10,2017
Despite dramatic progress public health has been made in the past few decades, heart disease remains a leading cause of death for men and women in the United States. I am interested in knowing that February has been American Heart Month since 1963. This year, I remember this month and wear red on Feb. 3rd to show the support to people who are fighting with cardiovascular diseases, to promote healthy eating and exercising regularly. Thank you for many innovative companies who continue to offer new tools and systems for people to gain more access of information so that they can be proactive in preventing or treating heart diseases.
When Britons voted to leave the European Union on July 23, 2016, in a referendum commonly known as Brexit, the impact on the British economy — and on Europe’s too — was immediate. Here across the pond, though, it’s not been totally clear how Brexit would affect the U.S. economy, and in particular interest rates tied to mortgages.
A month later, we have a better understanding of how Brexit affects US real estate market. Here are some of the benefits Brexit is bringing us [and a drawback too].
There’s no guarantee, of course, when the market will right itself and the immediate impact of Brexit abates. And there’s no knowing whether a more stable European economy will allow interest rates Stateside to begin to climb again. That’s why homeshoppers need to make their move now and get into a new home while rates are low, home prices have not yet begun to climb and their dollars go further.
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"Absolutely will!" " Depending upon who occupies the Whitel house in 2017. Historically speaking home prices continue to go up through an election year and indeed the year thereafter. However the rate of growth certainly slows. We can see a very robust price growth in 2016, however 2017 will be another matter entirely."
"Wall Street is very powerful, but they don't like uncertainty"
-from Matthew Gardner, Windermere RE Chief Economist
Here Are All The Dates You Need To Know For Election 2016
July 18-21 — Republican National Convention in Cleveland
July 25-28 — Democratic National Convention in Philadelphia
Sept. 26 — Presidential debate at Wright State University in Dayton, Ohio
Oct. 4 — Vice presidential debate at Longwood University in Farmville, Virginia
Oct. 9 — Presidential debate at Washington University in St. Louis
Oct. 19 — Presidential debate at University of Nevada-Las Vegas
Nov. 8 — Election Day
On Thursday May 12th, Seattle officials announced to host the next Special Olympics USA games in July 2018, which will mark the games' 50th year since its first International Special Olympics in 1968 in Chicago.
It is anticipated to have 3500 athletes from 50 states to come over to Seattle from July 1-6, 2018. University of Washington will be the venue to host the 16 individual and team sports such as powerlifting, gymnastics, soccer, volleyball etc.
Not only thousands of athletes, but also thousands of volunteers and spectators will gather in Seattle in July, the best month of summer. We can imagine beautiful Seattle showcased once more on a national stage.
As a certified residential specialist and a realtor in King County, Washington, it is my instinct to evaluate the impact the Special Olympics will have on the already heated local real estate demand in Seattle. With so many positive news regarding Seattle’s hosting of big national and international events, I have strong confidence that the local economics and real estate market will grow and be more prosperous than our conservative predication completed in early 2016.
Lisa Dong is an experienced realtor in Seattle area, serving people on their real estate needs since 2010. She can be reached by email@example.com.
This is no better time to invest in Seattle than right now", Seattle Mayer Ed Murray said when he visited Shenzhen, China in May 11th, 2016.
万科与美国房地产投资和开发公司 Laconia Development 签约，双方将共同在西雅图核心地段开发建设一栋 43层出租公寓项目。
Today's buyers are more concerned than ever about living green, and that means finding an eco-friendly home. How do you know the home you want is truly green?
Green means different things to different people. Buyers focused on energy cost savings prefer homes that have basic energy-efficient features, such as Energy Star appliances, weatherproofed windows and good insulation. Buyers concerned about personal health issues prefer homes that use non-toxic materials such as low VOC paints and bamboo flooring. Still other buyers want to contribute to a more sustainable future. They look for building materials that are produced locally or use reclaimed wood.
At the most basic level, Energy Star appliance, double-paned windows and efficient heating and cooling systems can lower energy bills and give buyers peace of mind. Other factors to consider include:
- Cost. Expect to pay more for a green home. A recent study by the University of California finds that green-certified, single family home sold for 9% more than a comparable home that wasn't green.
- Square footage. The larger the home, the more energy it consumes. Buying a smaller home is more economical.
- Paint. Use water-based paints that contain lower levels of VOCs than conventional oil-based paints. VOCs emit gases that can cause health issues.
- Carpeting/flooring. Choose carpeting made from recycled or renewable materials. For wood flooring, bamboo or reclaimed wood are popular choices.
- Utilities. Review past utility bills to determine typical monthly energy costs. Also request documentation on any green features that have been added to the property.
- Landscaping. Choose plants and trees that don't require the same level of maintenance as a lawn.