• Get New Listing Alerts
  • Current Manhattan Listings
    • All Manhattan Beach
    • Sand Section Homes
    • Tree Section Homes
    • Hill Section Homes
    • Manhattan Village
    • East Manhattan Beach
    • Liberty Village – East MB
    • Beachfront Strand Homes
  • Sellers – Your Home Value
  • Manhattan Beach Public and Private Schools
    • School Boundary Map
    • Homes in Robinson Area
    • Homes in Grandview Area
    • Homes Pacific Area
    • Homes in Meadows Area
    • Homes in Pennekamp Area
  • Search Other Communities
    • Search the MLS – All Areas
    • Hermosa Beach
    • South Redondo
    • North Redondo
    • Torrance
    • El Segundo
    • Palos Verdes Estates
    • Fusion Townhomes South Bay
    • Hawthorne
  • Neighborhoods and Communities of the South Bay
    • Redondo Beach
    • El Segundo
    • Hermosa Beach
    • Three Sixty South Bay
    • Hawthorne
    • Hollywood Riviera
    • Lomita
    • Harbor City
    • Lawndale
    • Hollyglen Del Aire
    • Fusion Townhomes South Bay
    • Hawthorne CA Real Estate
  • Home

Manhattan Beach Homes for Sale

Real Estate and Homes for Sale in Manhattan Beach CA

You are here: Home / Taxes / Capital Gains Tax / 2018 Tax Law Changes in California

2018 Tax Law Changes in California

April 22, 2019 by admin Leave a Comment

We hope that the follwing information is helpful in giving you an idea of how tax laws have recently changed.

PREVIOUS LAW 2018 LAW
MORTGAGE INTEREST DEDUCTION Capped at $1M Capped at $750,000
STATE AND LOCAL TAX DEDUCTION Unlimited Deduction capped at $10,000 (income,
sales and property combined)
CAPITAL GAINS EXEMPTION ON SALE OF PRIMARY RESIDENCE Exclusion of up to $250,000 ($500,000
if married) of gain realized on sale or
exchange of principal residence if lived in
for 2 of the last 5 years
No change
1031 LIKE-KIND EXCHANGES Applied to all classes of property (e.g.
personal and real)
Limits non-recognition of gain to real
property
PERSONAL DEDUCTION Allowed Eliminated
STANDARD DEDUCTION $6,350 individual and $12,7000 if married $12,000 individual and $24,000 if married
MID FOR SECOND HOMES Capped at $750,000
HOME EQUITY LOAN DEDUCTION Capped at $100,000 Not deductible unless the proceeds are
used to substantially improve the property
MOVING EXPENSE EXCLUSION AND DEDUCTION Incurred in connection with change in work
place
Eliminated except for members of armed
forces on active duty that move pursuant
to military orders
CHILD TAX CREDIT $1,000 for each child $2,000 for each child
DEDUCTION FOR QUALIFIED BUSINESS INCOME OF PASS-THROUGH ENTITIES
INCLUDING
INDEPENDENT CONTRACTORS
None 20% deduction of taxable income phased
out above $157,000 ($315,000 if married)
for brokerage services
DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (RESIDENTIAL RENTAL) Recover period is 27.5 years No change
DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (NONRESIDENTIAL) Recover period is 39 years No change
DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (LEASEHOLD IMPROVEMENTS) Recover period is 15 years No change

Filed Under: Capital Gains Tax, Helpful real estate information, Tax Deductions, Taxes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your South Bay Real Estate Specialist

Keith Kyle

Realtor, Top Producing Agent Since 2007 310.251.2344 (cell/text) Keith@KeithKyleHomes.com DRE# 01718725

Torrance Real Estate and Homes

Search Our Site

Manhattan Beach Listings

Redondo Beach Listings

Copyright © 2019 · AgentPress Pro on Genesis Framework · WordPress · Log in