I am in the process of buying a house in the Bay area right now. I got in to contract on 11/22/17 and right now the close of escrow is set for 1/3/18.
A couple of questions related to the mortgage interest tax deduction being reduced from 1 million to 750000.
- My understanding is current home owners will still be able to deduct 1 million and the change will not apply to them, is that correct?
- What is the cutoff date for purchasing a house for the bill to take effect? I believe in the original House version where it was 500,000, it was retroactive to November 2017. Does anyone know what it is in the 'final' reconciled version? Is it retroactive at all?
- What is considered the date of sale for tax purposes? The date we entered into contract? Close of escrow? Or something in between?
Thanks,
-- worried and confused home buyer
Submitted December 17, 2017 at 11:54AM by knightry http://ift.tt/2k77XnV
