Tax Time: Housing-related Items to Keep in Mind

Tax season is upon us and, this year, the filing deadline is April 18. The deadline was pushed back from April 15 because of Emancipation Day, which is a holiday in Washington, D.C. As you prepare your 2021 taxes, here are a few housing-related items to keep in mind.

Home interest deductions

· Mortgages that closed before Dec. 14, 2017: A married couple filing jointly and single filers can deduct mortgage interest on a combined debt limit of $1 million.

· Mortgages that closed after Dec. 14, 2017: For both primary residences and second home loans, mortgage interest can be deducted on a combined debt limit of $750,000.

Property tax deductions

Taxpayers who itemize can only deduct up to $10,000 on a combination of state and local property, income and sales taxes. This applies to property taxes on your primary residence, a vacation home and undeveloped land.

Capital gains tax exclusions

Married-joint filers can exclude up to $500,000 and single filers can exclude up to $250,000 when selling their primary home, provided they’ve lived there two of the past five years.

Those are just a few of the housing-related tax laws. Please consult your tax advisor for more information on how these and other tax deductions may apply to you.

If you have any real estate-related questions, please feel free to contact me. I look forward to helping you with your future real estate needs.

*The information contained in this article is not intended to be and does not constitute financial or investment advice.