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Homeowners: Use these year-end tax moves to save ahead of tax reform

Source: - Dec 4, 2017

Sprint to the finish for tax reform
Sprint to the finish for tax reform
9 Hours Ago | 03:00

Homeowners might want to consider prepaying certain house-related expenses this year in advance of tax legislation that could clear Congress as early as this month.

The Senate passed its version of tax reform in the wee hours of the morning on Saturday and now will begin hashing out differences with the House bill, which passed in mid-November. While lawmakers work out the details — with the goal of getting final legislation to President Trump by the end of the year — homeowners may want to anticipate various provisions that could affect what they can and can't write off.

Because most deductions currently available to individuals would disappear under both versions of the bill, and the standard deduction would nearly double, fewer taxpayers would itemize deductions. This means that even if some tax breaks related to homeownership are retained in their current form, you might not have enough deductions in 2018 and onward to make itemizing worthwhile.

Here are the tax-bill provisions that could change the tax benefits of owning a home, along with some strategies for this year to maximize deductions before the tax code changes:

Category: General Business