Investment Update

June 2018

 

Your FP/CM Newsletter – 2Q18

FINANCIAL PLANNING – MORTGAGE FINANCING UNDER
THE TAX CUTS AND JOBS ACT OF 2017
VINCE MARSDEN, Partner, SVP of Financial Planning

 

THE BASICS
The Tax Cuts and Jobs Act (TCJA) of 2017 restricts
the tax-deductibility of interest paid on home loans
and home equity loans. It limits interest deductions
for home-ownership debt (whether obtained via
mortgages or home-equity loans) to only the amounts
incurred to buy or improve a first or second residence,
and only up to a total indebtedness that does not
exceed $750,000.

Previously the limit was set at
$1,000,000, and separately, homeowners could also
take interest deductions on any home-equity debt up
to $100,000. Loans taken out before the new law
came into effect are generally grandfathered, and not
impacted by the changes.

 

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