News & Updates

Tax Reform 2018

The National Association of Realtors has produced a comprehensive document that summarizes the changes affecting real estate professionals and homeowners.  All individual provisions are generally effective after December 31, 2017 for the 2018 tax filing year. The provisions do not affect tax filings for 2017 unless noted.

*We are Sharing this with our Clients  as a courtesy –  BUT You should always consult a tax professional about your own personal circumstances.

Below are some highlights regarding Real Estate:

Mortgage Interest Deduction
• The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17.
Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap. Neither limit is
indexed for inflation.

• Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long
as the new loan does not exceed the amount of the mortgage being refinanced.

• The final bill repeals the deduction for interest paid on home equity debt through 12/31/25. Interest is still deductible
on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.

• Interest remains deductible on second homes, but subject to the $1 million / $750,000 limits.

Deduction for State and Local Taxes
• The final bill allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or
sales taxes. This $10,000 limit applies for both single and married filers and is not indexed for inflation.

• The final bill also specifically precludes the deduction of 2018 state and local income taxes prepaid in 2017.

Click Here for the Full Report on the 2018 Tax Reform Bill from the National Association of Realtors

TAX ADVANTAGES OF LIVING IN DELAWARE:

Let’s talk money! Sussex County Delaware is famous for its’ beautiful beaches, inland waterways and its’ close proximity to Washington DC, Baltimore and Philadelphia, which made it a natural vacation destination. But when those same vacationers found out about our tax structure – Southern Delaware quickly became famous as one of “the most tax-friendly states – especially for retirees”.

Delaware has some of the Lowest Real Estate Taxes in the country. But there’s more…there is No Sales Tax, No Inheritance Tax for most residents, and No Social Security Tax. And if you’re 60 or older you can exclude up to $12,500 of Investment and Qualified Pension Income from your taxes and that includes Out-of-State Government Pensions.

Click Here for more detail on Sussex County Taxes

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