Which parts of the TCJA will expire in 2025 and how will it affect mortgage interest deduction and SALT cap?
So I'm trying to wrap my head around the Tax Cuts and Jobs Act (TCJA) expiration that's coming up in 2025. From what I understand, a bunch of provisions are set to sunset, but I'm particularly concerned about two things that directly impact my housing costs. First, I'm planning to buy a new home next year and I'm wondering if the $750,000 cap on mortgage interest deduction will change when TCJA provisions expire. Currently looking at properties in the $800k-900k range and trying to figure out how this might affect my tax situation long-term. Second, I'm in a high-tax state (NJ) and the $10,000 SALT (State and Local Tax) cap has been hitting me hard. Will this cap also expire, or is it permanent? Last year I paid almost $14,500 in property taxes alone, not even counting state income tax, so the difference would be significant for me. I haven't seen much certainty about what Congress plans to do about these expirations. If anyone has insight on what happens to these specific provisions if no new legislation is passed, I'd really appreciate it!
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Andre Moreau
The TCJA has several key provisions set to expire after December 31, 2025, and you're right to be thinking about this now. Let me break down what happens to your specific concerns if no new legislation is passed: For the mortgage interest deduction: Before TCJA, you could deduct interest on mortgage debt up to $1 million. TCJA temporarily lowered this to $750,000 through 2025. If Congress doesn't act, this will revert back to the $1 million cap in 2026. So for your planned home purchase in the $800k-900k range, you'd actually benefit after the expiration. Regarding the SALT cap: The $10,000 limit on state and local tax deductions was one of the most controversial parts of TCJA. This is also temporary and set to expire after 2025. Without new legislation, the SALT deduction would return to being unlimited in 2026, which would significantly help taxpayers in high-tax states like NJ. Other major TCJA provisions expiring include the increased standard deduction, changed tax brackets, expanded Child Tax Credit, and limitations on miscellaneous itemized deductions.
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Zoe Stavros
•Thanks for the info! If the SALT cap goes away, that would be huge for me too. Do you think Congress will actually let these provisions expire, or will they extend them? And if they do expire, would the changes take effect for the 2025 tax year that we file in 2026, or for the 2026 tax year that we file in 2027?
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Andre Moreau
•Political predictions are always tricky, but most tax experts believe Congress will take some action rather than letting all provisions expire automatically. They might extend some provisions while modifying others, possibly with different income thresholds or phase-outs. The changes would take effect for the 2026 tax year (filed in 2027). The 2025 tax year (filed in 2026) would still be under current TCJA rules. So your 2025 tax return would still have the $750k mortgage interest cap and $10k SALT limit, while your 2026 return would reflect whatever new legislation is passed - or if nothing passes, would revert to pre-TCJA rules.
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Jamal Harris
I was in the exact same situation last year trying to figure out how TCJA expiration would affect my home purchase and taxes. After dozens of confusing articles and conflicting advice from friends, I stumbled across this AI tax assistant at https://taxr.ai that literally saved me thousands in potential tax mistakes. I uploaded some documents about my mortgage and state tax situation, and it analyzed everything to show me exactly which TCJA provisions would affect me specifically and what my options were. It even ran different scenarios showing me the tax implications if I bought now vs. waiting until after the potential expiration. The analysis was super detailed but explained in plain English that actually made sense.
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Mei Chen
•Does it handle rental properties too? I own two rental homes and I'm wondering how the TCJA expiration might affect my depreciation and pass-through deductions. The 20% qualified business income deduction is huge for me.
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Liam Sullivan
•I'm skeptical about these AI tools. How accurate can it really be about future tax law changes when nobody knows what Congress will actually do? Seems like it would just be guessing like everyone else.
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Jamal Harris
•Yes, it definitely handles rental properties! I actually have a small rental condo too. The tool analyzed my depreciation schedule and showed how the QBI deduction might change after 2025. It also explained how the Section 179 expensing limits would be affected, which was something I hadn't even considered. For your skepticism, that's totally fair. The tool doesn't predict what Congress will do - it shows you multiple scenarios. It basically says "if no changes are made, here's what happens" and "if extensions are passed, here are your options." It's not guessing about legislation, it's showing you the impact of different possible outcomes so you can plan accordingly.
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Liam Sullivan
Well I have to admit I was wrong about that tax tool. I finally broke down and tried https://taxr.ai after my accountant gave me three different answers about how TCJA expiration would affect my business. The analysis was surprisingly detailed and gave me real clarity about the QBI deduction expiration. It walked me through exactly how the pass-through provisions would change, and even identified some current deductions I wasn't taking advantage of! Saved me about $3,400 just on this year's taxes, and now I have a clear plan for 2025-2026 regardless of what Congress does. Definitely worth checking out if you're trying to understand these complex expiration issues.
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Amara Okafor
After reading this thread, I spent TWO WEEKS trying to get through to the IRS to ask about the TCJA expirations and how they'll handle the transition. Impossible! Called over 20 times, always disconnected or on hold forever. Then I found Claimyr at https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - it got me connected to a real IRS agent in about 15 minutes! The agent confirmed everything about the mortgage interest going back to $1M and SALT deduction becoming unlimited again if no new law passes. She also explained how they're preparing for possible partial extensions. Honestly, it was amazing to actually get through and get official answers instead of just guessing based on articles.
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CosmicCommander
•How does this work exactly? I've been trying to reach someone at the IRS about TCJA business provisions for months with no luck.
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Giovanni Colombo
•Sorry but this sounds like BS. There's no way to skip the IRS phone queue. And even if you got through, most phone agents don't have detailed knowledge about future tax law changes because they just handle current year issues.
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Amara Okafor
•It's actually pretty straightforward. They use an automated system that navigates the IRS phone tree and holds your place in line. When they reach an agent, they call you and connect you. You don't skip the queue, they just wait in it for you so you don't have to. The IRS agent I spoke with was from the specialized tax law department, not just a general service rep. She specifically handles questions about legislative changes. I was surprised too, but she had detailed information about the TCJA sunset provisions and how the IRS is preparing for different scenarios. She couldn't predict what Congress will do, of course, but she confirmed exactly how the existing law works regarding the expiration dates and reversion to previous limits.
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Giovanni Colombo
I need to issue a correction and apology to Profile 8. I finally tried Claimyr last week because I was desperate to resolve an issue with my business tax account before filing some TCJA-related amendments. I honestly didn't believe it would work, but I got connected to an IRS tax law specialist in about 25 minutes. The agent gave me comprehensive information about the TCJA provisions expiring in 2025, including confirmation about the mortgage interest cap returning to $1M and the SALT deduction becoming unlimited again. He even emailed me official documentation about transition procedures they're implementing. Saved me hours of frustration and gave me accurate information directly from the source. I'm actually stunned at how well this worked.
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Fatima Al-Qasimi
Something important that nobody has mentioned yet - even if the TCJA provisions expire and the mortgage interest deduction limit goes back to $1M, many people still won't benefit from it because the standard deduction is so much higher now. My wife and I have a $600k mortgage and we STILL take the standard deduction because our itemized deductions don't exceed $27,700 (2023 married filing jointly standard deduction). So before you get too excited about the potential SALT cap removal or higher mortgage interest limits, do the math to see if you'd actually itemize at all. For many people, it won't matter.
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Dylan Cooper
•That's a good point, but isn't the higher standard deduction also part of TCJA and set to expire? So wouldn't the standard deduction also go back down in 2026, making itemizing more likely again?
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Fatima Al-Qasimi
•You're absolutely right - I should have mentioned that. The increased standard deduction is indeed part of TCJA and scheduled to expire after 2025. Pre-TCJA, the standard deduction was much lower (around $12,700 for married filing jointly in 2017, adjusted for inflation). If no legislation is passed, the standard deduction would indeed drop significantly in 2026, which would make itemizing deductions beneficial for many more taxpayers. So the combination of lower standard deduction, unlimited SALT deductions, and higher mortgage interest cap could create a substantial change in tax strategy for homeowners in high-tax states.
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Sofia Ramirez
Does anyone know if the $750k mortgage interest limit is per person or per return? My spouse and I are buying a $1.4M house and wondering if we each get $750k of deductible mortgage or if it's capped at $750k total for our joint return?
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Andre Moreau
•The $750k mortgage interest deduction limit is per return, not per person. So on a joint return, your total limit is $750k regardless of how many borrowers are on the mortgage. If you file separately, each spouse gets a $375k limit. This is also true for the pre-TCJA $1M limit that would return after 2025 if no new legislation passes. On a joint return it would be $1M total, or $500k each if filing separately.
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