If you’ve moved to a new home any time over the past several years, it’s possible that you were able to deduct some of your related expenses on your tax return. But that was then, and this is now.
Based on the new tax laws that were passed in the waning hours of 2017 (officially known as The Tax Cuts and Jobs Act), this particular deduction has gone away – and it may or may not come back in the year 2025. (This is the year that various provisions from The Tax Cuts and Jobs Act – many that can impact individual taxpayers – are set to expire).
Even so, though, home ownership can still provide you with some significant tax-related advantages. For example, most homeowners can still deduct all of the interest each year that is paid towards the mortgage, provided that the home loan is under $750,000. (Note that for those who file their tax return as “married filing separate,” the limit is cut to $375,000.)
In addition, property taxes that are paid may also be tax deductible. In this case, the IRS requires that, in order to be deductible, the property tax is paid in the same year in which you report the deduction. For instance, when you are filing your 2019 tax return, in order to deduct your property tax, the tax must have been paid between January 1st and December 31st of 2019.
With this in mind, home ownership can still provide you with some nice tax-related incentives, on top of helping you to build equity in the property, and to decorate the way you want to, without the need to obtain permission from a landlord.
If you’re considering a move in and / or out of Bakersfield or the Ventura County area, give us a call. We’ll work with you throughout the entire transaction, from finding out what you want in an ideal dream home, to closing and receiving the keys.
And, if you have a home to sell, we’ll work to find the right buyer so that you’re ready to move on to your next adventure! For more details, or to get your new home buying process started, just Contact Blue Lion Properties today.