April highlights from The MWE Advisor: taxpayers can continue to deduct interest paid on home equity loans and find out if Roth IRAs are still beneficial under the new tax law.
IRS Clarification: Home Equity Loan Interest May Still Be Deductible
If you’re interested in making improvements to your home, there’s good news. The IRS recently announced that in many cases, taxpayers can continue to deduct interest paid on home equity loans. The tax agency issued the clarification because there were questions and concerns that such expenses were no longer deductible under the Tax Cuts and Jobs Act.
Are Roth IRAs Still Beneficial under the New Tax Law?
Roth IRAs can be a smart way for you to save for retirement. And temporary tax rate cuts for 2018 through 2025 under the new tax law could persuade some people to convert traditional IRAs into Roth IRAs sooner rather than later. But the new law also contains a potential pitfall if an account’s value unexpectedly falls after it’s converted. Here’s what you need to know before jumping headfirst into a Roth IRA or a Roth conversion.