Did the “Tax Cuts and Jobs Act of 2017” and it’s increased standard deduction eliminate many of the tax advantages of home ownership?

Read the Story

Show Top Comments

Yes. The $10k SALT cap, the $750k mortgage interest deduction cap, and the removal of the home equity loan deduction were the major changes in the TCJA that affected homeowners specifically. With the huge increase to the standard deduction, the number of filers who itemize is pretty significantly a minority.

tired-gay-raccoon

In CA this was a painful change if you own a home and have a mortgage.

Emperor_TaterTot

Worth mentioning that doubling the standard deduction was enormously beneficial to people who rent. There has long been a good argument for leveling the playing field, and not giving homeowners special tax status. Prior to the change, comparatively wealthy got to write off a substantial portion of their housing payment while those who rent paid full freight.

fenton7

Definitely changed and hurt those that live in states with high taxes that otherwise could have been deducted. Cost me a few grand so far in Maryland.

dcdave3605

If all you have is mortgage interest and property taxes you’re not going to be itemizing anymore, especially if you’re married. And the “miscellaneous itemized deductions” like employee expenses, legal fees, tax prep fees, all gone. So pretty much you need both an expensive mortgage, and either a good amount of charitable donations or a *lot* of medical expenses to itemize anymore. Or investment interest if you’re into trading.

zffch