There are some new tax law changes you need to know about that I’d like to discuss today.
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What’s happening with the new tax laws? How are they affecting the real estate market?
The main point we brokers were worried about was the capital gains exemption, but they ended up not touching this one. Single people can still qualify for a capital gains exemption of up to $250,000, and married couples can still qualify for an exemption of up to $500,000.
The next point was how many itemized tax deductions you could make on your property. There is now a limit of $10,000 for these kinds of tax write-offs. This won’t affect most people because most people don’t have property taxes over $10,000. This will definitely affect people in the higher price ranges above $600,000 though, so that’s something you may want to speak to your CPA about.
There was also the question of how the SALT exemption will affect people, but it will really only impact the wealthiest 5% to 10% of the population because almost 90% of SALT benefits go to taxpayers with higher income amounts (usually over $100,000).
“Speak to your CPA for a more in-depth look at how these changes affect you.”
One of the cool things they’re allowing people to do is write off $10,000 a year on secondary and private schools. They also doubled the lifetime tax exemption from $5.6 million to $11.2 million. This means people with a higher net value won’t have to pay as much when they pass away.
When making financial decisions that involve these changes, make sure you get all the facts first and check with your CPA. If you don’t have a CPA, we know plenty of great ones who we trust and who we’d love to refer to you.
If you have any other real estate questions or you’re thinking of buying or selling a home, don’t hesitate to reach out to us. We’d be happy to help you.