Will the new tax law save you money or cost you money? The answer depends on a complex array of factors that touch on just about every aspect of your

Will the new tax law save you money or cost you money? The answer depends on a complex array of factors that touch on just about every aspect of your financial life. This article is about a subset of your finances: How the tax law will affect homeownership and mortgages.

Among other things, the tax law changes whether and how homeowners deduct mortgage interest and property taxes. Many of these revisions for individuals and families are set to expire at the end of 2025.

Here are  five elements of the tax law that could affect homeownership, home selling and moving.

1. Mortgage interest deduction

The mortgage interest tax deduction is touted as a way to make homeownership more affordable. It cuts the federal income tax that qualifying homeowners pay by reducing their taxable income by the amount of mortgage interest they pay. Beginning in 2018, the deduction is scaled back to interest on debt up to $750,000, instead of $1 million, for people who buy homes on or after Dec. 15, 2017.

 Tax law through 2017Tax law beginning in 2018 Mortgage interestYou may deduct the interest you pay on mortgage debt up to $1 million ($500,000 if married filing separately) on your primary home and a second home.For homes bought before Dec. 15, 2017, no change. But for homes bought Dec. 15, 2017, or later, you may deduct the interest you pay on mortgage debt up to $750,000 ($375,000 if married filing separately).

The law carves out an exception for people who were under contract to buy a home before Dec. 15, 2017, as long as they were scheduled to close by Jan. 1, 2018.

Another exception: When you refinance a mortgage, the compromise bill treats the new loan as if it were originated on the old loan's date. That means the old limit of $1 million would apply.

Use NerdWallet's mortgage interest deduction calculator to find out what this means for your next mortgage.
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nIf your new mortgage is less than $750,000, this mortgage interest deduction tax change has no impact on you. The mortgage interest deduction debt cap is still higher than your new mortgage!","fBuild":{}},{"form_identifier":"","name":"fieldname82","shortlabel":"","index":3,"ftype":"fradio","userhelp":"The tax change only affects borrowers who claim itemized deductions, not the standard deduction. Most Americans claim the standard deduction, and the percentage of those doing so will likely increase, as the standard deduction is roughly doubling for many Americans under the new tax rules. Will you claim the standard deduction?","userhelpTooltip":true,"csslayout":"","title":"Standard deduction or itemized deductions?","layout":"one_column","required":false,"choiceSelected":"","showDep":true,"choices":["I'll claim the standard deduction","I'll claim itemized deductions","I don't know, help me!"],"choicesVal":["3","2","1"],"choicesDep":[["fieldname91"],["fieldname99","fieldname95","fieldname94"],["fieldname92"]],"fBuild":{}},{"form_identifier":"","name":"fieldname92","shortlabel":"","index":4,"ftype":"fradio","userhelp":"","userhelpTooltip":false,"csslayout":"","title":"Which better describes you?
Without projecting your filing status, tell us if you more closely fit the profile of someone claiming a standard deduction or itemized deductions.","layout":"one_column","required":false,"choiceSelected":"","showDep":true,"choices":["Standard deduction. Your household earns less than $100,000 per year. If you own property, your property taxes are low and youu2019ve owned it long enough that you pay less in interest each year.","Itemized deductions. Your household earns at least $100,000 per year. You own an expensive property and pay a lot in taxes and interest. Youu2019ve had high medical or dental expenses over the past year."],"choicesVal":["2","1"],"choicesDep":[["fieldname91"],["fieldname99","fieldname95","fieldname94"]],"fBuild":{}},{"form_identifier":"","name":"fieldname91","shortlabel":"","index":5,"ftype":"fhtml","userhelp":"","userhelpTooltip":false,"csslayout":"","fcontent":"No impact on your taxes
nIf you claim the standard deduction, the mortgage interest deduction tax change has no impact on you.","fBuild":{}},{"form_identifier":"","name":"fieldname99","shortlabel":"","index":6,"ftype":"fcurrency","userhelp":"Not sure? You can always estimate using a current mortgage rate.","userhelpTooltip":false,"csslayout":"","title":"Interest rate (%).
What is the annual interest rate on your home borrowings?","predefined":"4.20","predefinedClick":false,"required":false,"size":"small","readonly":false,"currencySymbol":"","currencyText":"","thousandSeparator":",","centSeparator":".","min":"","max":"","formatDynamically":false,"fBuild":{}},{"form_identifier":"","name":"fieldname97","shortlabel":"","index":7,"ftype":"fCalculated","userhelp":"","userhelpTooltip":false,"csslayout":"","title":"[Min of property amount and $1.0 million cap]","predefined":"","required":false,"size":"medium","toolbar":"default|mathematical","eq":"min(1000000,fieldname90)","suffix":"","prefix":"","decimalsymbol":".","groupingsymbol":"","dependencies":[{"rule":"value==3","complex":false,"fields":["fieldname46"]}],"readonly":true,"hidefield":true,"fBuild":{}},{"form_identifier":"","name":"fieldname98","shortlabel":"","index":8,"ftype":"fCalculated","userhelp":"","userhelpTooltip":false,"csslayout":"","title":"[Difference in Interest paid2]","predefined":"","required":false,"size":"medium","toolbar":"default|mathematical","eq":"max(((CALCULATEPAYMENT(fieldname97,360,fieldname99)*360)-fieldname97)/30-((CALCULATEPAYMENT(750000,360,fieldname99)*360)-750000)/30,0)","suffix":"","prefix":"","decimalsymbol":".","groupingsymbol":"","dependencies":[{"rule":"value==3","complex":false,"fields":["fieldname46"]}],"readonly":true,"hidefield":true,"fBuild":{}},{"form_identifier":"","name":"fieldname95","shortlabel":"","index":9,"ftype":"fradio","userhelp":"We're using updated 2018 tax brackets that will apply when you file your return in 2019.","userhelpTooltip":false,"csslayout":"","title":"Tax bracket
What is your total household income level?","layout":"one_column","required":false,"choiceSelected":"","showDep":true,"choices":["10%. Up to $19,050 for married, filing jointly or $9,525 if filing as a single.","12%. $19,051 to $77,400 for married, filing jointly or $9,526 to $38,700 if filing as a single.","22%. $77,401 to $165,000 for married, filing jointly or $38,701 to $82,500 if filing as a single.","24%. $165,001 to $315,000 for married, filing jointly or $82,501 to $157,500 if filing as a single.","32%. $315,001 to $400,000 for married, filing jointly or $157,501 to $200,000tif filing as a single.","35%. $400,001 to $600,000 for married, filing jointly or $200,001 to $500,000tif filing as a single.","37%. $600,001 or more for married, filing jointly or $500,001 or more if filing as a single."],"choicesVal":["10","12","22","24","32","35","37"],"choicesDep":[["fieldname94"],["fieldname94"],["fieldname94"],["fieldname94"],["fieldname94"],["fieldname94"],["fieldname94"]],"fBuild":{}},{"form_identifier":"","name":"fieldname94","shortlabel":"","index":10,"ftype":"fCalculated","userhelp":"Our calculation assumes a 30-year fixed mortgage, and assumes you pay interest equally over the term of your new mortgage. In reality, if you're early in your mortgage you'll pay more in interest.","userhelpTooltip":false,"csslayout":"","title":"Estimated increase in taxes from the mortgage interest deduction tax change ($):","predefined":"","required":false,"size":"medium","toolbar":"default|mathematical","eq":"ROUND(fieldname98*fieldname95/100,0)","suffix":"","prefix":"$","decimalsymbol":".","groupingsymbol":",","dependencies":[{"rule":"","complex":false,"fields":[""]}],"readonly":true,"hidefield":false,"fBuild":{}}],{"0":{"title":"Mortgage interest deduction calculator","description":"Weu2019re here to help you sort out whether changes to the mortgage interest tax deduction for new mortgages will impact your taxes.","formlayout":"top_aligned","formtemplate":"","evalequations":1,"autocomplete":1},"formid":"cp_calculatedfieldsf_pform_1","setCache":false,"cache":false}]; 2. Property tax deduction

The former tax law eased the pain of paying property taxes by allowing qualifying taxpayers to reduce their taxable income by the total amount of property taxes they paid. Beginning in 2018, the deduction is limited to a total of $10,000 for the cost of property taxes, and state and local income taxes or sales taxes.

 Tax law through 2017Tax law beginning in 2018 Property taxesYou may deduct the property taxes you pay on real estate you own.You may deduct up to $10,000 ($5,000 if married filing separately) for a combination of property taxes and either state and local income taxes or sales taxes. 3. Home equity deduction

On top of the mortgage interest deduction, the former tax law added a deduction for interest paid on home equity debt 'for reasons other than to buy, build, or substantially improve your home.' So, for example, if you borrowed from a home equity line of credit to pay tuition, the interest you paid was tax-deductible.

Starting in 2018, the deduction is eliminated for interest paid on home equity debt.

 Tax law through 2017Tax law beginning in 2018 Home equity debtYou may deduct interest on up to $100,000 of home equity debt ($50,000 if married filing separately). Eliminates the deduction for interest on home equity debt. 4. Mortgage interest deduction for second homes

You may deduct interest on mortgage debt on your primary home and a second home. The new law keeps this part of the former tax law in place, although it reduces the amount of eligible mortgage debt, as seen in item No. 1 above.

 Tax law through 2017Tax law beginning in 2018 Mortgage interest deduction for second homesDeduct the interest you pay on mortgage debt up to $1 million ($500,000 if married filing separately) on your primary home and a second home.Deduct the interest you pay on mortgage debt up to $750,000 ($375,000 if married filing separately) on your primary home and a second home. 5. Moving expenses

Under the former tax law, you could deduct some moving expenses when you moved for a new job. You had to meet complex criteria involving distance and timing of the move.

Beginning in 2018, only active-duty members of the armed forces will be allowed to deduct moving expenses.

 Tax law through 2017Tax law beginning in 2018
Moving expensesDeduct some moving expenses if you meet distance and time requirements.Only active duty members of the armed forces may deduct moving expenses. Capital gain  rule unchanged

When you sell a house, the capital gain is the difference between the price you paid for it and the price you sold it for. This capital gain is treated as taxable income. If you owned the house long enough, you're allowed to exclude up to $500,000 of this capital gain as income so you don't have to pay federal income tax on it. (The exclusion is capped at $250,000 for married taxpayers filing separately.)

The new tax law doesn't alter the capital gain exclusion for homes. The House and Senate had voted to limit the exclusion, but they struck that language from the final bill.

 Tax law through 2017Tax law beginning in 2018 Capital gainYou must have owned the home, and used it as your primary residence, during at least two of the five years before the date of sale. You cannot have used this exclusion in the two years before the sale of the home.No change to the capital gain exclusion. Fewer taxpayers would itemize

The nonpartisan Tax Policy Center estimates that the number of itemizers will fall from about 49 million to 10 million under the new tax law.

The upshot: Under the tax law through 2017, if you're married filing jointly and you paid $15,000 in mortgage interest and property taxes in 2017, you would itemize those deductions because they exceed the standard deduction of $12,700.

Beginning in 2018, the standard deduction for married filing jointly rises to $24,000. If you're like the hypothetical family above, your $15,000 in mortgage interest and property taxes is less than the standard deduction. So you won't itemize. You will use the standard deduction.

Whether you end up paying less tax or more tax depends on a wide range of factors beyond the homeownership-related deductions and exclusions discussed here. Every taxpayer is different.

Realtors raise a ruckus

The National Association of Realtors opposed increasing the standard deduction on the grounds that it 'would destroy or at least cripple the incentive value of the mortgage interest deduction (MID) for the great majority of current and prospective homebuyers, and sap the incentive value of the property tax deduction for millions more.'

NAR argued that the de-emphasis on itemized deductions would result in 'a plunge in home values across America in excess of 10%, and likely more in higher cost areas.'

Skeptics challenged the Realtors' assertion that giving taxpayers a bigger standard deduction would cause home prices to nosedive. Logan Mohtashami, senior loan officer for AMC Lending Group in Irvine, California, says in an interview that there are always 'spreadsheet people' who decide whether to rent or buy a home based on tax advantages. 'But, in general, people buy homes because they want to raise their family, they want to own something, forced savings' " and not have to deal with a landlord, he says.

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Holden Lewis is a writer at NerdWallet. Email: hlewis@nerdwallet.com. Twitter: @HoldenL.