Homeowners to lose key tax deduction under new Tax Cut and Jobs Act
LAS VEGAS (KSNV) —
Taxpayers who own a home will lose a key tax deduction under the Tax Cut and Jobs Act.
The mortgage interest deduction is repealed and fundamentally replaced by an increase in the standard deduction.
Single filers will see an increase in the standard deduction from $6,350 to $12,000, while the deduction for married couples filing jointly moves from $12,000 to $24,000.
“Your home mortgage interest deduction, you’re not going to get a tax benefit,” says UNLV Boyd School of Law professor Francine Lipman. “You’ll just use the standard deduction. Same thing for your property tax, you’re not going to get a tax benefit because you’re just going to use the standard deduction,” she says.
The sweeping change to the tax code also promises to increase the amount of per-paycheck take-home pay for most Americans, but exactly how much is unclear.
The IRS says it won’t have updated withholding tables in place until February.
“Take a look at your paycheck for the month of December,” says Nevada Sen. Dean Heller. “When you get your paycheck for February, compare the two, and you will see the tax relief that’s gonna come out of this piece of legislation."
It’s expected the tax bill will be signed into law by President Trump next week.