November 26, 2018

2018 Taxes: Are your prepared for this year's tax law changes?

The Tax Reform Act passed into law in December 2017 was the most significant tax legislation passed in 30 years.

It contains many changes for taxpayers of all classifications.  Some changes are beneficial.  Others ... Well, not so much.

Itemized Income Tax Deductions:  New Federal Limitations for 2018


If you are an individual income tax payer (filing federal Form 1040 with attachments), and historically have taken large itemized deductions for expenses such as mortgage/home equity loan interest, state and local income taxes,  and property taxes, you may be in for a very unpleasant surprise this year.

The amount of allowable deduction for those expenses has been capped beginning January 1, 2018.  For taxpayers filing jointly, the deduction for all state and local taxes - including property taxes - is now capped at $10,000.  In states with high state taxes and property valuations - including my resident state of California - that cap may adversely affect many property owners with a higher income tax bill.

Ouch.

The end of the year is right around the corner.  Don't put off reviewing your current income tax situation, if you have not already done so this year.

Tax Concerns?
About Mary Rae Fouts, EA

Mary Rae Fouts, EA provides tax, insurance consulting, and expert witness services to clients who have technical or complex concerns.  For more information about Mary and her professional services visit FoutsFinancialGroup.com.

Mary Rae Fouts

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