IT IS OFFICIAL.
Both Chambers of Congress have now passed the Republican Tax Overhaul Bill. It is the first such overhaul in more than 30 Years! The Corporate cuts are permanent, while the individual changes expire at the end of 2025. Good news is the Mortgage Debt Interest Deduction changes will not affect 94% of our population. Here are 8 things you need to know about the new tax laws effective 2018…
1. These New Tax Laws Will Not Apply to Your 2017 Taxes Filed in April 2018
2. Mortgage Debt Interest Deduction Change Effective 2018:
For 2017, You May Deduct Interest on a Primary Residence Mortgage up to $1,000,000
Going into Year 2018, You May Deduct Your Mortgage Interest Paid on up to $750,000 — and Only for Your Primary Residency Mortgage.
3. $10,000 Maximum Deduction on Property Tax Plus State and Local Income Tax
Includes Combination of State and Local Income or Sales Taxes, Plus Property Taxes
Regardless of Whether You Are Single or Married, You Are Not Allowed to Deduct More Than $10,000 of Property Taxes and State and Local Income or Sales Taxes.
4. Taxpayers will Still Be Allowed to Claim a Deduction of Up to $2,500 for the Interest Paid on Student Loans Each Year.
5. The GOP's Tax Overhaul Bill Doubles the Current Child Tax Credit from $1,000 to $2,000 per Child Under the Age of 17.
This Child Tax Credit Will Be Available to High Earners for the First Time. Raising the Income Threshold under which Filers May Claim the Full Credit to $200,000 for Single Parents -- up from $75,000 -- and to $400,000 for Married Couples -- up from $110,000.
In Addition, Allows a $500 Credit for Each Non-Child Dependent. This helps Families Caring for Elderly Parents.
6. Effective 2018, Interest Paid on Loans for Vacation Homes is No Longer Deductible.
7. Home-Equity Debt
Interest Paid on Home-Equity Loans Will No Longer Be Deductible Beginning in 2018.
8. In 2018, Moving Expenses Will No Longer Be Deductible, Except for Members of Military.
REFERENCES: Click here to view the actual COPY OF THE FINAL VERSION OF TAX PLAN