Here’s What You Need to Know About Trump’s Tax Plan If You Own a Home

Here’s What You Need to Know About Trump’s Tax Plan If You Own a Home

Homeowners have gotten used to lucrative tax perks. Not only can they write-off their mortgage interest, they can also deduct the amount that they pay in local real estate taxes. The two tax breaks represent a big chunk of the deductions claimed by many taxpayers, but the amount that can be deducted will change dramatically if Donald Trump's tax plan passes Congress.

Here's what could be different the next time you file your taxes.

Today, homeowners can reduce the amount of their taxable income by the amount of interest that they pay on a first and second home. The deduction can only be taken if you itemize deductions rather than claim the standard tax deduction, and it only applies to interest charged on the first $1 million of debt used to acquire, or build, a home.

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Source: Fool.com