4 Atlanta Homeowner Tax Benefits Changing with the New Tax Plan
By now, we’ve all heard about the new tax plan and that it may affect our deductions and returns going forward. But one thing Metro Atlanta homeowners are concerned about is exactly how it’s going to affect the deductions they are currently able to take— particularly property taxes, mortgage interest, and even interest on a home equity line of credit (HELOC). There will indeed be a few differences in your deductions on your 2018 return and I’ve outlined four of them below:
Mortgage Interest
If you’re a homeowner in Alpharetta, Brookhaven, Buckhead, Dunwoody, Roswell, or Sandy Springs, you know that mortgage interest is one of the more major tax benefits of owning a home. When filing your 2017 tax return, you are currently able to deduct mortgage interest on a loan of up to $1 million. Next year, homeowners with a mortgage secured prior to December 15, 2017 will still be able to deduct interest on a loan of up to $1 million. However, for mortgages secured after that date, there will be a cap of $750,000 for all properties owned, whether they are the homeowner’s first, second, or subsequent properties.
Property Taxes
For 2017, most Metro Atlanta homeowners will be able to deduct property taxes on their return. What’s changing next year is that property taxes will not be a separate deduction. Atlanta homeowners can take one deduction instead, which will include property taxes, state and local sales taxes, as well as income taxes. This deduction will have a cap of $10,000 for those married and filing jointly.
Home Equity Line of Credit Interest
If you took out a home equity line of credit (HELOC) in 2017 or before, you can still deduct the interest from the loan on your 2017 taxes, no matter if you used it to pay your child’s college tuition or renovate your kitchen. However, next year, Metro Atlanta homeowners will only be able to take the deduction if the HELOC was used to buy, build, or improve a property. You will not be able to deduct the loan’s interest if it was used for anything else.
Energy Efficiency Upgrades
You may be familiar with the energy efficiency upgrade credit if you purchased new appliances for your Metro Atlanta home recently, however that credit expired in December 2016. For those who installed solar electric or solar water heating equipment, there is still a deduction available to you through December 31, 2021. What will change on next year’s tax return is based on the date of installation of these energy efficient upgrades. For instance, if you installed between January 1, 2017 and December 31, 2019, 30% of the costs are eligible for the credit. For installations between January 1 and December 31, 2020, that decreases to 26%, and for those between January 1 and December 31, 2021, it decreases to 22%.
There are still numerous perks to being a homeowner in Metro Atlanta and as your local real estate expert, I’m here to help you realize them! Give me a call today for more information about your home’s value, relocating to or from Atlanta, and for a list of available properties in Alpharetta, Brookhaven, Buckhead, Dunwoody, Roswell, or Sandy Springs.
Jill Heineck
Associate Broker
Heineck & Company at Keller Williams Realty
Phone: (404) 418-9157
Email: jill@heineckandcompany.com
Visit My Website
Become a Fan on Facebook
Connect on LinkedIn
Follow me on Twitter
Contact Me