Wichita, KS market update for real estate sales and mortgage interest rates.September 4, 2019Exploration Place, downtown Wichita, KS along the Arkansas riverThe average price for a residential
Aug 6 2019 67037 1
Mortgage Interest Deduction
Limited to $750,000 under the new law
Mortgage Interest Deduction allows homeowners to reduce their taxable income by deducting the amount paid in mortgage interest. This is a remarkably effective tool that facilitates homeownership.
Mortgage Interest Deduction provisions from the recently passed federal tax legislation:
The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/2017. 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 12/14/2017 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 12/31/2025. 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.
Contact Wayne "SHORTY" Short for all your real estate needs.
For Immediate Release: Top Agent Joins the “Wichita Home Team” with Keller Williams in Wichita, KS Wichita, KS Spring, 2019 _ Wayne “SHORTY” Short one of the Mid-West’s top-producing r....