IRS Okays Home Equity Deductions

The Tax Cuts and Jobs Act of 2017 affected the tax deduction for interest paid on home equity debt as of 2018. Under prior law, you could deduct interest on up to $100,000 of home equity debt, no matter how you used the money. The old rule is scheduled to return in 2026.

The bad news is that you now cannot deduct interest on home equity loans or home equity lines of credit if you use the money for college bills, medical expenses, paying down credit card debt, and so on. The good news is that the IRS has announced “Interest on Home Equity Loans Often Still Deductible Under New Law.” (See IRS Information Release IR-2018-32.)

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New Tax Law Will Change Divorce Tactics

When couples divorce, financial negotiations often involve alimony. The tax rules regarding alimony were dramatically changed by the Tax Cuts and Jobs Act (TCJA) of 2017, but existing agreements have been grandfathered. In addition, the old rules remain in effect for divorce and separation agreements executed during 2018. Beginning next year, the rules will change, and the roles will be reversed.

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Difference Between Property Managers and Outside CPA

Some of you who have rental property and are using only a property management company that purported offers as “in-house” accounting services should be advised that is not an ideal practice. You are entrusting a group with your investment and with funds to manage this. Too many times in Costa Rica, there are property managersRead more about Difference Between Property Managers and Outside CPA[…]