--- title: Tax Changes for Homeowners in 2018 description: Here are all of the pertinent tax changes that homeowners and aspiring homeowners need to be aware of. These changes impact tax year 2018 and beyond. These tax changes are as follows. You can also listen to a discussion about these changes in the most recent episode of Taxes & Beer. image: https://preferences.darkhorse.cpa/hubfs/Stock%20images/Couple%20sitting%20on%20sofa%20with%20their%20pet%20dog%20in%20their%20new%20house.jpeg --- [![DarkHorseText-1](https://preferences.darkhorse.cpa/hs-fs/hubfs/DarkHorseText-1.png?width=871&name=DarkHorseText-1.png "DarkHorseText-1")](http:///darkhorsecpa.com) - [Dark Horse Home](https://darkhorsecpa.com/) - [Blog Home](https://preferences.darkhorse.cpa/blog) [![Learn More Here](https://no-cache.hubspot.com/cta/default/4714225/3c2e3081-a20f-4216-b160-9ef3038dcb02.png)](https://cta-redirect.hubspot.com/cta/redirect/4714225/3c2e3081-a20f-4216-b160-9ef3038dcb02) [Ë](https://preferences.darkhorse.cpa/blog/wordpress/2018/02/01/tax-changes-for-homeowners-in-2018#mobile) By [Dark Horse General](https://preferences.darkhorse.cpa/blog/author/dark-horse-general) • February 1, 2018 # Tax Changes for Homeowners in 2018 In our most recent Podcast episode of *Taxes and Beer*, **Dark Horse's Max Fritz and I** discussed all of the pertinent tax changes that homeowners and aspiring homeowners need to be aware of. These changes impact tax year 2018 and beyond. These tax changes are as follows: 1. Mortgage loan balance limit for full deductibility is **$750K** (down from $1M). Interest related to mortgage balances in excess of $750K **is not** deductible. The interest that pertains to the first $750K **is deductible**. This applies to loans that originated **after** December 15, 2017. The old limits apply to loans that originated before Dec 15, 2017 **AND** refinanced loans if the original loan was made prior to Dec 15, 2017 AND the refinance does not increase the loan's balance when refinanced. 2. Interest on home equity loans is **no longer deductible**. 3. Property Taxes are combined with State and Local Taxes (SALT) and **capped at $10K** on your Schedule A (itemized deductions). 4. PMI (Private Mortgage Insurance) deduction **has been extended** to tax year 2017. For 2018, there is no decision at this point as it is one of the "extenders" that was not encompassed by the Tax Cuts & Jobs Act. 5. The above changes **DO NOT** impact rental properties, but rather only personal residences which generate deductions on Schedule A. Nothing changed in regard to Section 125 gain exclusions for primary residences that were principal residences for 2 of the previous 5 years. 1031 Exchanges still exist for Real Estate, although other property types are no longer eligible for 1031 exchanges. 6. A sizeable amount of taxpayers who previously itemized will no longer do so given the **doubled Standard Deduction**. To listen to our conversation on this and a tasty beer, click here: https://itunes.apple.com/us/podcast/taxes-beer/id1331349578[![Taxes & Beer Podcast Logo](https://darkhorsecpa.com/~darkhors/images/podcastlogoupdate.png)](https://darkhorsecpa.com/podcast.php) [![Dark Horse CPAs](https://preferences.darkhorse.cpa/hs-fs/hubfs/dark-horse-cpas_horizontal-black.png?width=1336&height=393&name=dark-horse-cpas_horizontal-black.png "Dark Horse CPAs")](https://darkhorse.cpa/) #### Dark Horse CPAs Contact Dark Horse CPAs North County SD Office 2033 San Elijo Ave #148 Cardiff, CA 92007 619-736-1404 #### Keep in Touch ### Subscribe to Our Blog © 2026 Dark Horse CPAs