Tax Changes Which Affect Tulsa Real Estate

Every year there are changes to tax laws. This year, there have been some changes which affect the real estate market. Here are a few and how they affect you.

The first change is about home purchasing. In the past, you could purchase a house for up to a million dollars and write it off on your taxes. The new maximum has been changed to $750,000. So, this may change the price of the home you are looking for.

The second big change involves home equity lines of credit. Normally you can apply for a line of equity to buy a car, pay off credit debt, or many other things. However, they are mostly used for home improvement. In the past, you could take the amount of interest you paid on that equity line and use it as a tax deduction. Now, only home equity lines which are used for home improvement are tax deductible.

The last change is to the maximum amount for a conventional loan. Previously, it was $417,000. This has been raised to $451,000. You can now purchase more home and have a better interest rate.

Also, if you have an investment property you are looking to sell, remember you have 90 to 120 days to purchase a new property. After that amount of time, you have to pay your capital gains tax from that sale. A wise investment move is to take your profit from that sale, place it into a 1031 exchange, and then find a new property over the 90 to 120-day period.

These are not bad changes. The best thing you can do is to meet with a CPA. Whether you have an investment property you are looking to sell or looking to get a credit line to fix up your home, the CPA can help you come up with a game plan that works best for you. They may even suggest refinancing to help get the best deductions. Schedule a call, or an appointment, for your real estate questions today at askinforbaskin.com

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