At the monthly Silicon Valley Association of Realtors meeting in Los Altos, Dennis Young, CPA and partner with Young, Craig & Co. in Mountain View, discussed major changes and clarified some of the rules pertaining to the new tax law, noting that the code has “a lot of contradictions and confusion in it.”
Major changes include the new tax rates (now seven) and changes to the mortgage interest deduction. Taxpayers will no longer receive the personal exemption, but the standard deduction has doubled to $12,000 for individuals and $24,000 for joint filers. The child tax credit has increased to $2,000. The mortgage interest deduction is now capped at $750,000 for new loans made after Dec. 14, 2017. State and local tax deductions, as well as property-tax reductions, now have a total cap of $10,000, whether filing as an individual or jointly.