By Maureen Renzi, vice president - communications

Owning a home is one of the single greatest financial resources for many people. In fact, home ownership – buying, selling, and investing – generates some of the most popular questions for users of PICPA’s Ask a CPA service. And the uncertainty may soon rise.

As a result of the Tax Cuts and Jobs Act of 2017, many of the old tax rules of home ownership will be changing next year. This tax season may be the last time that some home deductions will be allowed to reduce an individual’s tax liability. The standard deduction is going up in 2018, but many other deductions will be limited or eliminated.

Here are some tips homeowners should consider this year before a new set of rules apply.

• If I put my house in my child’s name, can we avoid inheritance tax?
• Do I have to pay capital gains tax if I have to move because of an employer-mandated relocation?
• What are the tax implications of selling a home soon after purchasing it? 
• If I purchase a home with a family member, how do we split it on our taxes?
• Do I qualify for capital gain exclusion if I inherited my mother’s house that I have lived in?
• Can I sell my home without capital gains tax if I didn’t update my driver’s license as soon as I first occupied the property?
• Can my husband and I deduct interest from our construction loan on our taxes?
• Are there tax consequences for selling a home at the same price we bought it for?
• Are there any tax breaks for ill homeowners?
• Would putting my name with my spouse’s on our mortgage mess up my student loan payment plan?

When selling a home, it’s important to consider any investments you have made into the property that would help mitigate any profit on the sale. This blog gives some great advice on how to track home improvements to make it easy when you are ready to sell.

If you still have questions about home ownership and taxes, you can check out this list of questions and answers. You will find guidance on inheritance, rental properties, joint property in divorce, and more.

Investing in property for home ownership or rental income can be complicated. Like all investments, make sure you understand the benefits and risks before making any changes. A CPA can help analyze your situation.