Laws and Taxes for Homeowners, What's New

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Below are some fairly recent legislation trends that may be worth looking into when it comes to owning a home. Homeownership can be expensive, though the benefits of home ownership typically outweigh the cost. Occasionally, changes to the law at either the state or national level can affect how these benefits and costs affect you. This is especially true if you’re still considering whether or not to buy a house, You need to know the changes to understand the impact it may have on your final decision of purchasing a home in the near future. 

Changes To Tax Break 
One big change that’s hitting a lot of homeowners hard is the elimination of interest they have paid on their homes. This was a big tax breaks that was formerly offered to homeowner, but as of 2018 is no longer available. While this doesn’t directly affect the cost of owning a home, it can have a significant impact on your tax return if you were expecting to qualify for this tax expired break. Tax law is complex and can change from one year to the next, so it’s possible that these breaks (or others like them) will see a return in future years. However, it’s important to check each year before filing your taxes. Contacting a CPA is a good source to check with on changes to state and federal tax changes.

Cost For Roof Replacement 
In some areas, the law allowed homeowners to replace their roof without all of the costs normally associated with such a big job. This was due to contractors being allowed to waive a portion of their fees equal to the deductible on the customer’s homeowner’s insurance. Unfortunately, changes in the law are starting to close. States like Texas are changing the law so that contractors caught waiving the deductible could face fines or even jail time. Homeowners obviously aren’t big fans of such changes due it means more money out of the Homeowners own pocket.

Incentives for Solar and Alt Energy 
There were a number of solar and alternative energy incentives available to homeowners at both the state and federal level, but some of these have been altered, were negated or simply expired without renewal in the last year or two. In some cases, federal programs have been replaced by state programs that provide similar incentives. In other cases, the incentives have been revamped and renewed later. Not all tax breaks and other incentives have been renewed, it’s important that homeowners confirm that specific programs still exist before beginning that new project.

Changes to Home Loan 
Every few years it seems like there are significant changes to home loans – and the last few years have been no exception. Fortunately for those wanting to buy a new home or refinance an existing loan, some recent bits of legislation have expanded on borrowing limits for certain types of loans without adding new restrictions. Unfortunately, many of these laws affect lending through state-level programs instead of making adjustments to loans at the federal level. Some also only affect certain types of homes or houses that are built for specific uses. Inreguard to changes to federal loan programs, you may have to wait a bit longer.

It's a Good Idea to Consult the Experts
It’s hard to stay on top of the changes in laws from one year to the next. Having a lawyer or real estate expert to help you sort through all of it can be a great way to keep from being caught unprepared by these new laws. You can contact Me, Sheri Griffin and I can provide a number of Attorney's names and number that can give you answers to so some of the changes that have happen both nationally and state wise. I can also provide a number of contact in the mortgage lending world that could answer question on changes when it comes to loan products. Plus, contacting your CPA is another resource you could contact in this ever changing world of laws and taxes.




 Thanks to HomeKeepr for many of this ideas.

Lyndhurst, NJ 07071