The “Big Beautiful Bill” – What Does It Mean to Homeowners?
Good News:
- Change in SALT: in 2017 the maximum deduction allowed for property taxes and State income taxes was lowered to $10,000.00/year. The new law raises that limit to $40,000.00 (If your income is over $500,000.00, that number is reduced)
- PMI (Private Mortgage Insurance): The new law allows you to deduct PMI from your taxable income. That is very significant for FHA and other loans with lower down payments. This is also very significant to any senior who has a reverse mortgage.
- No tax on Social Security: This will significantly help older homeowners collecting Social Security benefits.
- Tips and overtime refunds: Tips of up to $25,000.00/year and overtime up to $12,500.00 a year will not be taxable. Most taxpayers will see that as refund of taxes paid through the year.
- 100% Bonus Depreciation for rental properties: You can now deduct 100% of repairs (air conditioning, carpeting, etc.) in the year you made the purchase. This improves the desirability of considering rental property as an investment.
The Bill should have a positive effect on the real estate market at a time when we are looking for ways to increase real estate sales to formerly high levels.
As always, we encourage you to discuss any real estate plans or questions with us. You can call or text, 949-500-6365, email, Fr***@**********ro.com, or through our website, WWW.FrankDiLauro.com.
