As you may know, the US tax code has been changed, but what does that mean for the 2017 tax returns you’re filing? It’s your last chance to take advantage of any deductions from the old code.
If you haven’t gotten all you can from the tax break, it’s time to keep adding more. Here are 4 of the major tax breaks that will be disappearing.
1. Home office
Since there has been an increase in telecommuting and working from home, the home office tax deduction is one that will be taken out. Luckily, for all self-employed, full-time workers, you’ll be able to continue your deduction for 2018. But, for any office workers who work in their “home office” on the days they work from home, you can no longer use that deduction.
2. Unlimited property tax
A big change for homeowners with the tax bill is the cap on property tax deductions. Regardless, all property taxes will be deductible, but the maximum you can deduct going forward will be $10,000 (including local, property, and sales tax).
If you pay more than $10,000 a year between the state and local income taxes, property taxes, and sales tax, anything exceeding that amount is no longer deductible. While you can, take advantage of it now.
3. Moving expenses
If you moved in 2017, you’re in luck. You’ll be able to take advantage of this deduction, as long as you meet the requirements. For example, your new job is at least 50 miles farther away than your old job was.
The only exception moving forward is if you are a member of the armed forces.
4. Interest on a home equity loan for non-home improvement
A home equity loan is money you borrow using your home as collateral. Usually, your “second mortgage” takes the form of a home equity loan or line of credit. Interest could be deducted up to $100,000 for married/joint filers and $50,000 for individuals.
Now, home equity loans are only deductible if it is used for a purpose to build, buy, or improve your home. If you wanted to use your home equity loan money to go to grad school, then it’ll be on you – interest and all.