2018 tax laws have dramatically changed the benefits of homeownership, especially in California and especially in higher-end areas like Beverly Hils and West Los Angeles. Mortgage tax deduction- limited. Property tax deduction-limited. For some higher-earning families, property tax deductions got completely eliminated. So maybe it’s a time to sit down with your CPA, who is hopefully also a realtor and look at your situation. Maybe if you wanted to downsize, right now, it could be a good time. If you are considering refinancing, that could be a big tax mistake.
If you don’t want to downsize, maybe there are some strategies you could employ in your situation. You might want to consider taking your Beverly Hills mansion and leasing it out. This way you re-enable old tax deductions and you will get additional tax benefits. You can take rental income and use it to rent another place. This way, you will still live in a nice place close to the Beverly Hills area and will enjoy all the old benefits of real estate ownership.
The bottom line is you have to work with somebody who can show you the entire picture. I am Irina Hill. In 2018, I was in top 5% of all real estate agents in Los Angeles County. I’m also a CPA who is highly knowledgeable in the tax strategies pertaining to homeownership. I have an MBA in finance, which is a helpful background in evaluating your financial situation. As a realtor, my job is to educate homeowners. So let’s have a short meeting. There are no obligations to you or to me, where we can look at your situation and see if together, we can turn apparent disadvantages into advantages. Leave a comment here or text me: (310) 467-2277.