Taxes: A Reason to Sell Your Home in a Divorce
Posted by Carlie Berke, CDFA®
April 23, 2019
When it comes to divorce, the limitations on state and local tax deductions, including property taxes, may be an additional reason to consider selling the family residence. This is particularly true in high tax states such as California. The reduced property tax deduction may increase the tax bill of the spouse keeping the home.
The Numbers Don’t Lie
Furthermore, if you have to refinance the family home in order to get your spouse’s name off the mortgage, and your mortgage was over $750,000, under the new tax law, mortgage interest deduction is limited to the amount of interest mortgage value of $750,000. Previously, you could deduct mortgage interest on up to $1 million of mortgage value.
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The divorce rate has doubled for adults fifty and higher in the last 25 years. Understanding the process and how to navigate your emotions will save you personal stress and money. See which presentation is best for you. Statistic Source: Pew Research Center
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