Highlights of the New Tax Law
All of the above changes are temporary and are scheduled to expire at the end of 2025.
Sale of Principal Residence – Exclusion of Gain
TCJA does not change the $250,000 for single filers and $500,000 for joint returns exclusions from capital gains tax for the sale of a principal residence when the homeowner has owned and lived in the home for two of the last five years.
TCJA retains the current long-term capital gains rate of 15% generally but 20% on those in the highest tax bracket. Depreciation recapture for real property remains at 25%.
Like Kind Exchanges
Tax deferred IRC section 1031 like kind exchanges for real property will be retained in the TCJA. Personal property 1031 exchanges are no longer allowed.
Moving expenses will no longer be deductible except for those in the military. Certain certified historic structures will still receive a tax credit. The child tax credit will be increased from $1,000 to $2,000. Casualty loses will be deductible only in a presidentially-declared disaster.
As with any tax law, the specifics of the taxpayer’s situation make a great deal of difference in the outcome. This summary is general in nature and you are advised to speak to your own tax advisor.
Cited from the National Association of Realtors.