How the New Tax Reform Affects Deductions for Homeowners and Home Sellers

[fa icon="calendar"] Mar 2, 2018 5:30:58 PM / by Eustis Mortgage

Eustis Mortgage

January 1, 2018, President Donald Trump’s new 7 year tax reform law became effective.

These changes have altered deductions for homeowners and home sellers in several ways.



Interest caps reduce 25% on first and second properties purchased after December 14, 2017.  Existing mortgages have been grandfathered from the cap.



Between December 31, 2017 and December 31, 2025, all state and local tax deductions (including property and sales taxes) have been capped at $10,000 (or $5,000 if married filing separately).



Today, the IRS will not recognize deductions on interest of home equity loans or lines of credit. Unless they are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

View examples here.



If your property has been your primary residence for 2 out of 5 years before selling, you still qualify for capital gain exclusion.


Only military personnel qualify for moving expenses to count as tax deductions.


Whether you’re a homeowner or home seller, it’s important to stay up-to-date on the latest news and legal updates that affect the mortgage industry. For more information contact one of our mortgage specialists today.




Topics: mortgage pre-approval, private mortgage insurance, pmi rates, mortgage refinancing, pmi, tax benefits, 3% down mortgage, money, credit cards, investment, second home, buying a vacation home, mortgage, trid, applying for a loan, economy, loans, renovation, housing market, fha loan, technology, buying vs. renting, homeownership, first time homeowner, home ownership, expenses, selling your home, real estate, renting vs. buying, mortgage process, tips, realtor tips, first time home owner, loan candidate, standard loans, mortgage rate, loan payments, 203K Streamline, rent rates, home buying, mortgage news, first time home buyers, real estate market, mortgage rates, mortgage qualification, first time home sellers

Eustis Mortgage

Written by Eustis Mortgage

Subscribe to Email Updates

Lists by Topic

see all

Posts by Topic

see all

Recent Posts