What California's Homeowners Should Know about Taxes After the 2017 Reform Act

• The limit on deductible mortgage debt was reduced.
• Mortgage debt may be refinanced up to $1 million and deduct interest if not higher than original mortgage.
• Equity loan interest is deductible if proceeds improve the residence.
• Second home mortgage interest deductible subject to limits.
• Itemized returns may deduct up to $10,000 on applicable taxes.
• Capital gains exclusions remain the same-$250,000 for single and $500,000 for married filers.
• The California housing market may see a 2018 decline in inventory as owners stay put, but an increase in home prices.
• Please contact your tax professional for your particular tax situation.