How Tax Reform Affects Homeowners…What You Need to Know!

House on a US tax form schedule A
New tax legislation was signed into law at the end of 2017, and it included some significant changes for homeowners. These changes took effect in 2018 and do not influence your 2017 taxes.  Here’s a brief overview of this year’s tax changes and how they may affect you.  
 
The amount of mortgage interest you can deduct has decreased.
 
Under the old law taxpayers could deduct the interest they paid on a mortgage of up to $1 million. The new law reduces the mortgage interest deduction from $1 million to $750,000.
These changes do not affect mortgages taken out before December 15, 2017.
 
The home equity loan deduction has been changed.
 
The IRS states that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled. The Tax Cuts and Jobs Act of 2017, enacted December 22, suspends the deduction for interest paid on home equity loans and lines of credit unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan. The deduction would be suspended from 2018 until 2026.
 
The property tax deduction is capped at $10,000.
 
Previously taxpayers could deduct all the state, local and foreign real estate taxes they paid with no cap on the amount. The new law limits the deduction for all state and local taxes – including income, sales, real estate, and personal property taxes – to $10,000.
 
The casualty loss deduction has been repealed.
 
Previously, homeowners could deduct unreimbursed casualty, disaster and theft losses on their property. That deduction has been repealed, with an exception for losses on property located in a federally declared disaster area – an important victory!
 
The capital gains exclusion remains unchanged.
 
Homeowners can continue to exclude up to $500,000 for joint filers or $250,000 for single filers for capital gains when selling their primary residence as long as they have lived in the home for two of the past five years. An earlier proposal would have increased that requirement to five out of the last eight years and phase out the exclusion for high-income households, but it was struck down.
 
   
How does tax reform affect your plans for buying or selling a home?
 
The changes in real estate related taxes may change your strategy. Contact one of our agents to go over your options and answer any questions you may have.

 

This post originally appeared on the WindermereEastside.com Blog.
Posted on March 28, 2018 at 2:18 pm
Marilena Sirbu | Category: Local Economy | Tagged , , , , , , ,

Creating Comfort Through Interior Design

 

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Just because the Christmas decor is put away and the festive mood of the holidays is over doesn’t mean we have to stop creating a snug and cozy home. It’s a good time to embrace winter Hygge! If you aren’t familiar with Hygge, it’s a Danish word for feeling content and cozy.

Here are seven ways to bring Hygge style comfort to your home, even during the dreariest winter month of the year!

LAYERED LIGHTS

Even if you feel like you’re lacking in the cozy department, simply addressing your lighting will make a huge difference. Layers of lighting make every room feel more welcoming. In the daytime, natural light is ideal. But for evenings, it’s nice to add a cozy glow. A good rule of thumb is to try to have a least three light sources in every room. Use a mix of table lamps, floor lamps, task lamps, and overhead lighting. Consider using warmer lightbulbs for the coziest ambience.

COMFORTING MOMENTS

Your home will offer a sense of comfort when you incorporate some favorite photos of loved ones, treasured hand-me-downs, antiques or flea-market finds, eye-catching conversation starters, art that inspires you, special mementos, or simply things that make you smile.

AN INVITING AROMA

What aroma feels ‘cozy’ to you? Set the tone for your home by filling it up with winter scents that inspire you.

TOUCHABLE TEXTURES

The coziest homes contain a variety different textures that delight the eye. Incorporate different touch-worthy materials through pillows, drapery, throw blankets, rugs, lamps, and furniture. The fabric possibilities are endless: velvet, woven, knit, embroidered, grain sack, faux fur, tweed, etc. You can also consider creating contrast with varying materials like metal, wood, glass, rattan, mirrored, painted, and more.

A PLACE TO CURL UP

Make yourself a special cozy place to relax. A reading chair will be extra cozy with some good books nearby in a basket, a lamp, a footstool, a side table to set a cup of tea, and a soft blanket you can curl up in.

A BIT OF WARMTH

Every home can benefit from warmth. No matter what your color scheme, you can add warmth through natural tones like wood, leather, jute, warm metals, etc.

SOMETHING LIVING

A room comes to life when an organic element is incorporated into the decor. Every room can benefit from having at least one plant, bouquet of flowers, or even a sprig of greenery like eucalyptus to remind us that spring is on its way.

 

This post originally appeared on the Windermere Blog.

Posted on January 23, 2018 at 11:58 am
Marilena Sirbu | Category: Uncategorized | Tagged , , , ,