See how the tax laws and revisions of 2018 changed the tax laws for California homeowners. Compare the old laws with the new laws and see how they might impact you.
| 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 infor 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 realproperty |
| 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 |
