Wait a Second... It's Still Tax Deductible

Wait a Second…It’s Still Tax Deductible

There has been some confusion surrounding the new tax laws enacted December 22, 2017.  We were told that the sky was falling, and they were right – but it was just a Chinese space station that didn’t hurt anyone – kind of like the changes to the tax laws.

The IRS sent a memo out recently (click here for memo) that read:

·         “Taxpayers may only deduct interest on $750K of qualifying home mortgage deduction.”

·         Taxpayers may deduct qualifying interest if it was ”used to buy, build or substantially improve the taxpayer’s home that secures the loan.”

·         “Despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled.”

The Easterbrook Team
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EasterbrookTeam@spmc.com