This article points out the changes in the new United States tax code with implications for real estate, and our resident legal expert, Rolando Rodriguez, interprets these changes. Investors take note, what you don't know can hurt you.
Item One: Home Mortgage Interest Deduction modification.
- Old acquisition indebtedness deduction cap: $1 million
- New acquisition indebtedness deduction cap: $750,000
- Old Home Equity indebtedness cap: $100,000
- New Home Equity indebtedness cap: Suspended
Translation: The personal real estate investment cap for mortgage interest deductions has gone down 25%, and the amount you can claim as an individual has been eliminated entirely. This development exposes the individual, or…