This plan gets rid of deductions for homeowners.


For current mortgage borrowersabsolutely nothing is changing with your mortgage-interest deduction. For new home mortgages, you will still be able to claim a mortgage-interest deduction on up to $500,000 of mortgage principal. That means that about 97.5 percent of all new home owners will still be able to write off all of their mortgage interest come tax time.

You will also still be able to write off up to $10,000 in state and local property taxes from your federal tax bill, no matter when or where you bought your home.

For every single taxpayer in America, the standard deduction will nearly double: $12,000 for an individual and $24,000 for a couple filing jointly. So for millions of Americans who currently deal with the hassle of itemizing each year, now it may make more sense to simply take the standard deduction and keep more of your money—from taxes and from tax accountants.


Tags: Tax Reform