Is Paying off Your House the Right Move in Light of New Tax Law?
The new tax laws enacted at the end of 2017 changed the potential tax benefits of homeownership for many. Two major changes include:
- The new rules cap the amount of state and local taxes (SALT) that can be included in your itemized deductions at $10,000. The main components of SALT that will affect most people are state income taxes and the property taxes on your home. In many areas, $10,000 in annual property taxes alone is not uncommon.
- The standard
