'Old Republic International employees navigating home equity deductions under the TCJA should focus on strategic planning and documentation to align with IRS rules and unlock potential tax advantages.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.
'For Old Republic International employees, understanding the TCJA's home equity deduction rules is essential, as only home improvement-related loans now qualify, making proper usage and recordkeeping more critical than ever.' – Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
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The impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on home equity loan interest deductions for Old Republic International employees.
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Key eligibility requirements and deduction limits under the new tax laws.
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Best practices for using home equity loans and HELOCs effectively while taking full advantage of tax benefits.
The 2017 Tax Cuts and Jobs Act changed the tax landscape for homeowners like those in the Old Republic International. This legislation created some new tax benefits and eliminated some traditional deductions affecting homeowners' fiscal responsibility.
Home Equity Loan Interest Deduction Changes.
The TCJA changed how interest is deducted on home equity loans. Previously, employees of Old Republic International could deduct interest under most conditions. Today, they are cut in half through the end of 2025 – except under IRS-mandated restrictions: That deduction must be applied to buy, build or substantially improve the taxpayer's primary residence.
Eligibility for Deduction
- Old Republic International employees claiming this deduction must follow these guidelines:
- The funds must be used for substantial home improvements as defined by the IRS.
- The loan cannot be used for unqualified expenses like personal spending or debt consolidation.
Only mortgage debt up to USD 750,000 taken after December 15, 2017, is eligible for the interest deduction. For married couples filing separately, the limit is USD 375,000.
Tax Exempt Housing: IRS Advisory on Home Equity Loans.
In 2018, the IRS clarified interest on home equity loans, HELOCs and second mortgages are deductible when used for approved home improvements. That includes additions, roof replacements, HVAC installations & more – necessary to maintain or improve a home's value. Source: IRS Home Equity Loan Advisory (PDF).
Best Practices for Old Republic International Homeowners.
Old Republic International employees must prove the loan is used only for eligible renovations to get this deduction. Usage of funds can disqualify the deduction. Detailing expenditures and banking transactions is recommended to validate deductions during potential IRS audits.
Deduction Limits and Considerations
For loans originated post-December 15, 2017, the deductible interest is limited to USD 750,000 of home loan debt under the TCJA. For mortgages taken before that date, the deductible remains USD 1 million or USD 500,000 for married filers filing separately. Old Republic International employees with older mortgages should consult tax advisors on their situation.
Home Equity Lines of Credit & Deductibility.
For HELOCs, interest is deductible only if the money is spent on qualifying home improvements, which follow broader limitations that only home enhancement-related expenses are deductible.
Home Improvement Loan Considerations
Interest on loans up to USD 750,000 used for home improvements, including HELOCs, is deductible if the improvements benefit the property tied to the loan.
Concluding Thoughts
For Old Republic International employees looking to upgrade their living spaces, a home equity loan or HELOC could provide significant tax savings in interest deductions. Compare various loans to find one that works best for you.
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This summary informs Old Republic International homeowners about home equity tax deductions post-TCJA. Be it major property improvements or simply updating your living space – knowing the tax implications of your investments is important.
Managing a well-regulated greenhouse involves knowing specifics about home equity loan interest deductions under the TCJA. As a gardener needs to know what conditions encourage growth, so must Old Republic International homeowners understand IRS rules that allow such deductions to flourish. Planning ahead and allocating funds for qualified home improvements could yield tax benefits.
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- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
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Source:
1. Internal Revenue Service. Real Estate Taxes, Mortgage Interest, Points, Other Property Expenses . Oct. 2024, www.irs.gov . Accessed 15 Apr. 2025.
2. Cussen, Mark P. 'Tax Loophole for Deducting Home Equity Loan Interest.' Investopedia , Mar. 2024, www.investopedia.com . Accessed 15 Apr. 2025.
3. Lewis, Holden. 'Is Home Equity Loan Interest Tax-Deductible?' NerdWallet , Dec. 2024, www.nerdwallet.com . Accessed 15 Apr. 2025.
4. Pacific Life Editorial Team. 'How Tax Reform Impacts Retirement and Estate Planning.' Pacific Life , Nov. 2022, www.pacificlife.com . Accessed 15 Apr. 2025.
5. Block, Sandra. 'Retirees, Make the Most of Your Home Equity.' Kiplinger , Oct. 2020, www.kiplinger.com . Accessed 15 Apr. 2025.
What is the 401(k) plan offered by Old Republic International?
The 401(k) plan at Old Republic International is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax basis, helping them build a nest egg for retirement.
How does Old Republic International match employee contributions to the 401(k) plan?
Old Republic International offers a company match on employee contributions, which means that for every dollar an employee contributes, the company will match a certain percentage, up to a specified limit.
What are the eligibility requirements for Old Republic International's 401(k) plan?
Employees at Old Republic International typically become eligible for the 401(k) plan after completing a specified period of service, usually within the first year of employment.
Can employees of Old Republic International change their contribution rates to the 401(k) plan?
Yes, employees of Old Republic International can change their contribution rates to the 401(k) plan at designated times throughout the year.
What investment options are available in Old Republic International's 401(k) plan?
The 401(k) plan at Old Republic International offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
Is there a vesting schedule for the employer match in Old Republic International's 401(k) plan?
Yes, Old Republic International has a vesting schedule that determines when employees fully own the employer contributions made to their 401(k) accounts.
How can employees of Old Republic International enroll in the 401(k) plan?
Employees can enroll in the 401(k) plan at Old Republic International by completing the necessary enrollment forms, which are typically available through the HR department or the company’s benefits portal.
What is the maximum contribution limit for Old Republic International's 401(k) plan?
The maximum contribution limit for Old Republic International's 401(k) plan is subject to IRS regulations, which may change annually. Employees should check the latest guidelines for the current limit.
Does Old Republic International offer a Roth 401(k) option?
Yes, Old Republic International offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.
What happens to my 401(k) savings if I leave Old Republic International?
If you leave Old Republic International, you have several options for your 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the Old Republic International plan if permitted.
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