2018 Tax Bill Overview

2018 Tax bill changes

2018 Tax Bill Changes Overview

Thinking about the 2018 tax bill in neither a fun nor an easy to understand topic.  However, it is something that affects all of us.
I hope that the overview below comparing the 2017 rules to the 2018 tax bill will help you make the information more manageable.

One quick disclaimer: Laura Borja, Mann Mortgage and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide , and should not be relied on for, tax, legal or accounting advice. You should consult with your own tax, legal and accounting advisors before engaging in any transaction.

Standard Deduction/Personal Exemptions

  • Personal Exemption of $4,150 with phase outs for higher incomes
  • Standard Deduction
    • Single - $6,500
    • Married Filing Jointly - $13,000
    • Married filing separately - $6,500
    • Head of Household - $9,350


Itemized Deductions

  • Itemized deductions allowed with reductions at income levels starting at $320,000 (married) and $256,700 (single)



Mortgage Interest

  • Principal Residence and second home mortgages up to $1,000,000 (married) or $500,000 (single)
  • HELOC up to $100,000




Capital Gains

Maximum tax rate on long term capital gains is 20%

Capital Gains Exclusion for Primary Residence

Sale of a primary residence allows exclusion of gains of up to $500,000 (married) if 2 of 5 year rule is met

Like-Kind Exchanges (1031 exchange)

  • Allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability for the gain on the sale of the first asset.
  • Applies to like-kind exchanges of real property as well as certain categories of personal properties.

Individual/ Joint Tax Rates

Marginal Tax Rate Single

Married Filing


10% $0-$9,325 $0-$18,650
15% $9,325-$37,950 $18,650-$75,900
25% $37,950-$91,900 $75,900-$153,100
28% $91,900-$191,650 $153,100-$233,350
33% $191,650-$416,700 $233,350-$416,700
35% $416,700-$418,400 $416,700-$470,700
39.6% Over $418,400 Over $470,700
Marginal Tax Rate Head of Household Married Filing Separately
10% $0-$13,350 $0-$9,325
15% $13,350-$50,800 $9,325-$37,950
25% $50,800-$131,200 $37,950-$76,550
28% $131,200-$212,500 $76,550-$116,675
33% $212,500-$416,700 $116,675-$208,350
35% $416,700-$444,500 $208,350-$235,350
39.6% Over $444,500 Over $235,350

Hope this comparison overview of the 2018 tax bill helps you to better understand how the changes might affect you. Remember, contact your legal or tax advisor for more information about how the 2018 tax bill will affect your tax liability.

If you have any questions about any mortgage or real estate related topic, by all means reach out to me.
Send me an email
Give me a call - (858) 3-LOAN-SD
Text LOANINFO to 44222
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