• CMG MORTGAGE, INC. NMLS #1820

What the New Tax Law Means for Homeowners

  • January 11, 2018

The end of year passage of the Tax Cuts and Jobs Act is the most comprehensive tax code revision to take place since 1986.  While the tax reform changes will not impact your 2017 return, some workers might see the changes to their paychecks as early as next month. 

The biggest question for the housing community is how will the tax update impact homeowners?

 

Individual Rates Lowered

The individual rates are getting lowered across all seven tax brackets.  So, in 2018, most taxpayers will likely be getting a tax cut.

Standard Deduction Doubles

For individuals, the standard deduction will be raised to $12,000.  For joint filers, the standard deduction will be raised to $24,000.  For some taxpayers who itemize, it may make more sense to take the standard deduction next year.

State and Local Deductions are Capped

For taxpayers who choose to deduct property, income, and sales taxes, this deduction will be capped at $10,000.  In some high tax cities and states, this will have a significant impact. 

Mortgage-Interest Deduction Drops

For new mortgages originated, the mortgage interest tax deduction will be capped at $750,000. Most home values do not exceed $750,000, but this will impact homeowners in high-cost cities and states.

 

If you’d like to learn more about the Tax Cuts and Jobs Act, it is best to consult a tax advisor. 

 

Sources: CPMS Institute, Curbed

CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).