New tax laws concerning personal real estate for 2018 and beyond under the New US tax laws.
Deductible interest on personal residences and second homes is limited to that interest paid on loans secured by those properties up to $750,000 in loan amounts.
Deductions for personal home and second home property taxes and state income taxes are limited to $10,000 per year.
You get a standard deduction of $ 24,000 if filing jointly and $ 12,000 if filing separately. Therefore, you mortgage interest, and property taxes and state income tax, as well as medical expenses, and other allowable itemized deductions must exceed these amounts before you get any benefit from personal mortgage interest and property taxes.
These new rules for many taxpayers reduce the benefits of personal real estate ownership including personal residences and second or vacation homes.
It is also important to note that the deductions for dependents and the taxpayers have been eliminated and replaced with only the standard deduction set forth above.