Planning for your tax bill can be a complicated, but the potential payoff is worth the effort. With the proposed tax laws coming in 2018 there are some steps that can be taken in 2017 to ensure you take advantage them.
Below is an article from trulia.com that provides details on the best way to prepare for a tax bill as a homebuyer. After reading the article, give us a call at Carney Realty so we can help you manage the tax laws along with purchasing a home.
Source: trulia.com | Re-Post Carney 12/14/2017 –
If you’re looking to buy a home, your ears might have perked up when you heard that the Senate passed a new tax bill during the weekend. Even though the details of the bill are not finalized (there is still a House version and a Senate version), the news is filled with talk of how this tax overhaul might affect homeowners. Though nothing is finalized or signed into law yet, there are some moves all homeowners and homebuyers should consider making right now.
Certain moves were taken in the waning days of 2017—like making early mortgage and property tax payments—can help homeowners with this year’s deductions while preparing them for potential changes in years ahead. Don’t miss out on your chance to get yourself in the best situation possible, no matter what the future might hold.
1. Determine if you live in a high tax state.
If you live in a high tax state, the new tax code may have a weightier impact on you. To find out if you are in a high tax state, look here (residents of California, New York, or Connecticut will likely be impacted the most, depending on the family’s income and size). That’s because all existing homeowners and homebuyers would lose the ability to write off state and local taxes – including property taxes – from their federal taxes. All homeowners would be able to keep deducting their mortgage interest as long as their total itemized deductions are greater than $24,000 and the mortgage balance does not exceed $500,000. Because the new tax bill would eliminate the state and local income taxes or sales tax deductions, you may end up being pushed into a higher bracket. Now is a good time and figure out your new equation.