Homeownership Tax Changes

Tax season is here--and almost over. If you haven't filed yet, what are you waiting for? There are plenty of free and low-cost options out there like, Credit Karma and more.

The Tax Reform changed many things like doubled the standard deductions, increased credit amounts and whether and how homeowners deduct mortgage interest and property tax on their tax returns.

Here are three elements of the tax law that could affect homeownership and moving this year.

1: Mortgage interest deduction covers debt up to $750k

Many used the mortgage interest tax deduction to make homeownership even more affordable. It cuts the federal income tax that qualifying homeowners pay by reducing their taxable income by the amount of mortgage interest they pay. With the reform, the deduction was scaled back to interest on debt up to $750,000, instead of $1 million.