Having met with our new tax accountant, here are a few noteworthy items we discovered and thought we would share:
There are seven Important Deductions Going Away
• Dependent & personal exemptions
• Interest on Home Equity Loans not used to build, buy or improve your home
• Mortgage Insurance Premiums (Ugh!)
• Exclusion for forgiven debt
• Miscellaneous itemized deductions
• Moving expenses (this is a big one for our real estate clients)
• Tax preparation and investment fees
For all our business owners reading this, any box seats, sports seats or suites you have been sharing with your clients can no longer be applied as a tax deduction. This is also expected to be bad news for our sports teams and entertainment venue sales.
Here’s some GOOD news: The taxes should be much easier to complete and file now. Also, the Standard Deductions and The Child Tax Credit have increased. However, taxpayers who itemize their deductions can only deduct up to $10,000 on a combination of the following:
• State income taxes
• Sales tax
• Local taxes
• Property tax (If you pay high property taxes you will feel these effects more.)
If you would like an information piece on the latest tax laws, please let us know and we’ll mail it to you. Meantime, we’ll keep sharing as we learn more. Thank you!