These five tax breaks will be gone by the end of 2019.
Today I’ll discuss five tax breaks that will disappear by the end of this year.
But first, I want to remind you all to speak to your CPA or tax attorney to confirm if your situation applies. I’m neither a CPA or tax attorney, but I do want to provide important talking points to discuss with your tax professionals.
Now, let’s dive into the tax break we can expect to go away in 2019:
1. Home office tax deduction. From my understanding, W-2 employees are no longer going to be able to utilize the tax deduction associated with using their home as an office.
2. Writing off all property taxes. A new tax bill recently put a cap on the amount of property taxes that you can write off. That means you might not be able to write off the entire amount that you’d once have been able to. Be sure to speak with your tax professional to see how this might affect you.
3. Moving expenses. If you’re making a move, or already did in 2018, your tax write-off for moving might no longer apply.
4. Mortgage interest. Recently, a cap was added to how much mortgage interest you can write off: If your loan balance exceeds $750,000, you cannot write off interest above that amount.
5. Interest from home equity loans. Previously, you could write off the interest for a home equity line of credit (HELOC) regardless of what that HELOC was for. Now, you can only write off the interest if the HELOC is used for the purposes of real estate, be it building or otherwise adding to a property.
If you have any questions about these tax breaks or other real estate-related questions, feel free to reach out to me at any time. I’d be glad to talk to you.