Greenwich and Fairfield compete for the highest sale in the month of December
Selling for $5,925,000 after several years on the market, 37 Calhoun Drive features over 9,000 square feet of living space, 20 rooms, 8 bedrooms, 8 full and 2 half baths and sitting on 3.18 acres of land located in a private association close to Greenwich center.
Selling for $5,862,500 also after several years on the market, 210 Sasco Hill Road features over 11,000 square feet of living space, 16 rooms, 7 bedrooms, 9 and 1/2 baths and sitting on 2.38 acres overlooking Southport Harbor. This home has the longest water frontage on the harbor with breathtaking views.
The National Association of Realtors has provided an extensive summary on the impact of the recent federal tax reform on homeowners and real estate professionals. Below is a brief summary on the mortgage interest deduction and the state and local taxes. To read the full report, click here……
Mortgage Interest Deduction
The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. 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 12/14/17 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 12/31/25. 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.
The House-passed bill would have capped the mortgage interest limit at $500,000 and eliminated the deduction for second homes.
Deduction for State and Local Taxes
The final bill allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. This $10,000 limit applies for both single and married filers and is not indexed for inflation.
The final bill also specifically precludes the deduction of 2018 state and local income taxes prepaid in 2017.
When House and Senate bills were first introduced, the deduction for state and local taxes would have been completely eliminated. The House and Senate passed bills would have allowed property taxes to be deducted up to $10,000. The final bill, while less beneficial than current law, represents a significant improvement over the original proposals.
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