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Top Main Line Real Estate Firm Sage Realty Discusses How the New Property Tax Laws Impact 2017 Tax Filing

Main Line Real Estate Firm March 23, 2018 – Philadelphia, PA – Tax season is here, and many homeowners are wondering how recent changes to the tax code will affect their tax filings – as well as their property values.  Sage Realty, a respected Main Line real estate agency, wants people to know the impact of the 2017 law changes in 2018.

In fact, property values are expected to go up slightly in 2018, even considering the tax code changes in the estimates.  A recent report by the National Association of Realtors® (NAR) predicts that overall, prices in the U.S., and for Pennsylvania specifically, will increase about 4.2%

According to Sage Realty’s analysis of the experts’ advice, many of the changes to the tax code are only effective going forward and will minimally impact filings of 2017 taxes.  In particular:

1 – Interest on existing loans for up to $1m can still be deducted.

The 2017 tax code changes drop the ceiling for loan deductions to $750,000 going forward, but existing loans will be unaffected.  Homeowners with loans up to $1 million can still deduct their interest if the loan was in place prior to 2018.

2 – Home equity loan interest will still be deductible under certain conditions. 

For 2017, the old rules apply regarding deductions for home equity loans. However, some confusion has been surrounding whether home equity loans are still tax deductible under the new rules. Recently, the IRS clarified that owners will still be able to deduct the interest on a home equity loan, line of credit or second mortgage when the proceeds are used for home improvement.

3 – SALT deductions for 2017 still apply.

In the future, the State and Local Tax (SALT) deduction will be limited to $10,000, but a homeowner’s 2017 SALT taxes can still be deducted in full.

Some General Pointers for Homeowners at Tax Time

Sage Realty is always here to help clear up any confusion regarding the new tax code changes and real estate news. If you own your own home and itemize on your taxes, keep these tips in mind.

Track Home Office Expenses

If you own a home and have a certain area dedicated to home office use (and that you use as your primary location to conduct business) you may be able to deduct a percentage off of your taxes for utilities and home costs.

Keep Records of Home Improvement Expenses

Although most deductions for energy efficient upgrades to your home are no longer available, the credit for solar panel additions still exists until 2019. According to TurboTax, home improvements that also qualify as medically necessary may be deducted from income at tax time.

One way that home renovations can help with taxes is at sales time, according to Credit Karma. Home renovations costs can be added to your adjusted basis, which may decrease the amount of your calculated profit enough to alleviate capital gains tax expenses.

Keep Records of Moving Expenses

If you relocated for work reasons, you may be able to deduct part of the moving expenses, like truck rental or storage facilities.

Sage Realty cares about Main Line real estate and their clients. They want to help home owners get the best deal they can, whether that means finding the perfect house, or being able to sell their homes for a great price. This information about taxes is meant to help residents take advantage of the tax benefits of home ownership. Always consult with your tax professional for specific questions and situations.

About Sage Realty

Sage Realty was founded by Linda Walters, a long-time Philadelphia resident who decided to build a better Main Line real estate agency. Sage Realty’s team puts accountability at the forefront of their business, dedicating themselves to always advancing the best interests of their clients. When combined with their deep knowledge of the Philadelphia Main Line housing market, the result is Realtors® who can be trusted.

Sage Realty does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. For more information, contact 610-687-4000 or visit https://www.findahomeinpa.com/.

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Hear From Our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Hear from our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Sage Buyer Tips

Use Sage Buyer Tips to research the Main Line and stay up to date on real estate news. This online destination is chock full of resources for buyers and sellers: you can see our Main Line communities or explore Sage favorite places. Browse properties here and search other Main Line real estate. With Sage’s advice and experience, first-time buyers and those looking to upgrade can find homes best suited to their needs.