Standard Deduction Increases for 2018 Freeing Up Some Extra Cash for Renters Home Buyers

Standard Deduction Increases for 2018, Freeing Up Some Extra Cash For Renters, Home Buyers

Published On: April 29th, 2018Last Updated: June 17th, 2024Categories: Hard Money, Investment Properties, Taxes

Just a heads up: This year, changes to the federal tax law bring increases to the standard deduction that people can use when filing their 2018 taxes. Most Americans, including renters and home buyers of your investment properties claim the standard deduction, avoiding the hassle of itemizing on their federal tax returns every year. For 2017, the standard deduction for a married couple was $12,700.

Next April, the standard deduction for the same couple will be $24,000. Generally, this means a lower tax liability for the average renter or home buyer. Additionally, the Child and Family Tax Credit doubles per child to $2,000. Plus, the actual payable (refundable) portion goes up to $1,400 per child! This means a potential refund check for some who have not previously gotten refunds, even if they didn’t actually pay federal taxes. On top of that, some people with dependents (such as children older than 17) will see a tax credit of an extra $500.

In many cases, that will mean cash on hand and the ability to finally cover moving expenses or down payment costs on a mortgage. Obviously, some will pay off debt or take a vacation, but many others will use the money to finally purchase a home or move into a better rental. So, keep that in mind as you check out potential investment properties this year.

Are You Looking for a Hard Money Loan to Flip a House?

Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.