Here we are in the year 2018. What will the year bring?
Since you’re responsible about your finances, you might be more specifically curious about what new tax changes this year will bring. Since the Tax Cuts and Job Act passed into law at the end of 2017, some significant changes have occurred that could affect the way you file your taxes for years to come.
There’s no need to be overwhelmed, though. You have fortunately come to the right place to seek out the information you need to know. Continue reading to learn about how the 2018 tax changes will actually affect you and your family.
Changes in Deductions of Interest on Mortgages or Home Equity Loans
One of the 2018 tax changes that will affect a large portion of United States citizens has to do with property taxes.
As of December 15, 2017, there is now a cap on the deducted interest on a mortgage loan that you purchase. From that point on, you will only be able to deduct the interest you pay on a mortgage priced up to $750,000.00. Any interest you pay on a loan above that amount will not be deductible.
Additionally, it is now in effect that you will not be able to deduct any interest you pay on a home equity loan. If you are considering taking out a mortgage loan or a home equity loan, take note of these changes. Life events impact your taxes in a variety of ways, but with the new year, they will be affected somewhat differently.
Shifting of the Income Tax Brackets
Another important change is the fact that income tax might have shifted for you. Consult this get a quote here. If you have further questions about the changes made under the new tax plan, we encourage you to reach out to us today.