Property tax deduction. Under the TCJA, through 2025, the property tax deduction is subject to a $10,000 limit ($5,000 if you’re married filing separately) on combined deductions for state and local taxes. Higher-income taxpayers owning valuable homes in high-property-tax locations have seen a huge drop in the federal tax benefit they receive from their property tax payments.
Mortgage interest deduction. You generally can deduct interest on mortgage debt incurred to purchase, build or improve your principal residence and a second residence. Points paid related to your principal residence also may be deductible. Through 2025, the TCJA reduces the mortgage debt limit from $1 million to $750,000 for debt incurred after Dec. 15, 2017, with some limited exceptions.
Home equity debt interest deduction. Through 2025, the TCJA effectively limits the home equity interest deduction to debt that would qualify for the home mortgage interest deduction. (Under pre-TCJA law, interest was deductible on up to $100,000 of home equity debt used for any purpose, such as to pay off credit card debt or to buy a car.)
For guidance on tax deductions and questions about your own tax situation, please contact our office at 315.424.1120 or email@example.com.
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