Dawn (253) 307-6438
Brandon (253) 732-0778
Part 7 is our last recap of the Tax Cuts and Jobs Act of 2017…
Part 7 is our last recap of the Tax Cuts and Jobs Act of 2017 – Another loser in this plan are homeowners looking to get an equity line of credit.
If you are looking to use your equity in your home to get an equity line of credit there will now be more scrutiny over what your reason is. Home Owners used to be able to deduct up to $100,000 for a Home Equity Line of Credit.
Home Equity Lines of Credit are called HELOC’s. It used to be that you could get a HELOC for a new car, but this deduction is no longer available. In some other cases only part of the loan can be deducted.
For the tax years of 2018 through 2025 you cannot deduct HELOC’s. But there are a few exceptions. Equity lines must be used to buy, build or substantially improve your residence in order for it to be considered an expense.
With interest rates on the rise, it is creating a sense of urgency for buyers and investors to invest in real estate. In the long run as rates continue to rise, it will also create less movement in the market and more renters, so keep in mind that this will also raise the cost of renting. This is why the biggest winners with this tax code are the investors who rent and have a positive cash flow.
Best advice we could give you is “Buy Now”, the rental market is only going to get tougher and higher priced, with less selection.
Remember to always talk to your tax professional for more specifics.
The Heilbrun Team at John L. Scott, Orting, is here for you for all your real estate needs in Pierce and King County!
#HeilbrunHomeTeam , #TaxChanges2018 , #HousingMarket2018 , #EquityLines
Dawn Heilbrun, Owner
253-307-6438
The Heilbrun Home Team
John L. Scott, Orting
www.dawnh.johnlscott.com
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