Can You Still Deduct Your Mortgage Interest?
One of the biggest changes to the tax code for 2018 is the standard deduction. This is the amount you get regardless of any itemized deductions.
Over the years, this amount gets increased, usually based on CPI. Most people’s interest deduction goes down every year as well, so theoretically, your mortgage interest deduction will be meaningless.
But, for 2018, the standard deduction will just about double for everybody. For a married couple, the new standard deduction will be approx $23,000. Average married couple’s itemized deductions will fall under this $23,000, so the mortgage interest (as well as real estate taxes) will be meaningless…..unless…
You have a home based business!
With a home based business, you can deduct a portion of your mortgage interest & real estate taxes! The average amount (that I have seen) is 10-20% of what you paid for the year.
There are many different changes for 2018, but this will be major for alot of people. This is one way to recapture lost deductions.
If you do not have a home based business, it’s easy to get one. Just email me at firstname.lastname@example.org