A lot of people are asking us what is changing with the new tax code. Both the Senate and the House have tax proposals that would revise the tax brackets and it’s still changing.
- Change in property tax deduction for your main home. They are capping the deduction at $10,000. If your property tax is more than $10,000 for your main home, you may lose out on a portion. A tax saving tip may be to prepay your property tax bill in 2017 before this comes into effect.
- The moving cost deduction will be taken away from both bills. This would come into effect if you were relocating for a job.
- Mortgage interest deduction may be capped even further. No hard figure is set but it may be based on interested earned up to $500,000 or potentially $750,000. As it is now, the cap was set at $1,000,000.
- The top tax bracket is set to drop to 37% from 39.6%.
- Tax tip: Consider selling some of your bad stocks. Capital losses can offset your capital gains plus it can help offset up to $3,000 of your other income. The rest can be forwarded indefinitely to help offset all the other future capital gains!
Come back to view more updates as we receive more information.