How will the recently passed tax reform legislation affect you?
Standard deduction: The new law increases the standard deduction to $12,000 for single filers and $24,000 for joint filers.
Mortgage interest deductions: The new law caps the limit on deductible mortgage debt at $750,000 for loans taken out after Dec. 14. (Loans made before that date can continue to deduct interest on mortgage debt up to $1 million.) Homeowners can refinance mortgage debts that existed before Dec. 14 up to $1 million and still deduct the interest as long as the new loan does not exceed the amount refinanced. The interest on a home-equity loan can be deducted as long as the proceeds are used to substantially improve the home. Mortgage interest on second homes can be deducted but is subject to the $750,000 limit.
State and local property taxes: The new law limits the property tax deduction to $10,000.
Capital gains exclusion: Home sellers can exclude up to $500,000 for joint filers or $250,000 for single filers for capital gains when selling a primary home as long as the homeowner has lived in the residence for two of the past five years.
Deduction for casualty losses: The law restricts the deduction to only losses attributable to a presidentially declared disaster.
Moving expenses: The law eliminates the deduction except for members of the military.
Estate tax: The law doubles the estate tax exemption to $11.2 million.
Historic Tax Credit: The HTC has been used to fund renovations in more than 40,000 historic structures since 1981. The law continues to provide a 20 percent credit when the certified historic property is placed into service but the new law spreads the deduction over five years.
Low-Income Housing Tax Credit: The bill retains the 4 percent LIHTC, which funds about a third of all affordable housing construction.
The complete article with this information can be found here.