Towards homeowners. If you are a current homeowner, if

Towards the end of last
year, 2017 at the time of this posting, a new tax law has will come into
effect. The consequences of this new law will undoubtedly affect taxpayers,
especially homeowners. If you are a current homeowner, if is always a good idea
to stay wise of the current laws and you should be aware of the changes this
law will make. Fortunately, for you Colorado horse property owners, there are many
things in the new tax bill that you may benefit from and here are a few ways
you can capitalize on these benefits. So, make sure you talk to your tax
advisor about these changes and how you can get all the benefits you can from
them.

 

·       
If you are in the Armed
Forces, moving expenses for you and your family will stay the same, but has
been repealed for the rest of us.

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·       
The standard deduction
is also changing. It is now $12,000 for individuals and double for those of you
with joint returns. With this new law, it has been estimated that most
homeowners, ninety percent, will take advantage of this new standard deduction.

·       
Debts on your mortgage
can be refinanced. To be eligible the debts must have started on or after December
14 of this year (2017) and only amounts up to one million dollars in which you
can still deduct the interest. You can do this as long as your loan isn’t
higher than the amount of your mortgage that is being refinanced.

·       
Under the new tax law,
casualty losses will only be allowed if the loss was caused by a
presidentially-declared disaster.

·       
The new tax bill reduces
you limit on deductible mortgage debt. For loans made after December 14 of this
year (2017), that number can be up to a whopping $750,000. Loans that have
already been issued that amount up to one million will not be subject to this
new cap.

·       
The new tax bill also
repeals the deduction of interest on the debt you may owe on your home equity
through December 31 2025—that is, unless the money you gain is used to improve
the home.

·       
Itemized deductions on
state and local taxes, including property taxes, are now limited to ten
thousand.

Not Every This Has
Changed

One thing that hasn’t
changed with this new piece of legislation is the capital gains exclusion that
applies to principal residences. Entitlements include $250,000 for individuals
and up to $500,000 for joint returns of capital gain for homes that were owned
and lived-in as principal residences for two out of five years.

The Mortgage Forgiveness
Relief Act (2007) was not addressed in the new tax law and did expire in December
2016. This Act limited exclusion of income for discharged debt to your mortgage
for principal homeowners going through short sales or foreclosures. Now,
forgiven debt is considered income.