Tax Man LLC
Tax Changes 2018
Other Changes to Itemized Deductions
You’ve probably heard (wrongly) that there are “no more deductions.”
Time for some more truth serum.
What didn’t change:
What got limited(details below):
What got taken away:
SALT (state and local taxes) are limited to $10k: If you have more than $10,000 in state income tax, sales tax, DMV and property taxes on real estate, you cannot deduct the excess. Relatively few of you will have this problem. And those of you that do hit the $10,000 limit will likely find the lower tax rates will help far more than this limitation hurts.
Mortgage Interest: Stay tuned for Episode 7
Employee Expenses: Prior to 2018 you could deduct unreimbursed business expenses as an employee if they were high enough. But those are gone for 2018. If you get reimbursed your business expenses those normally stay tax-free. It’s only those out of pocket payments that are affected. So say goodbye to:
Please notice that these are only eliminated for employEEs. If you are self-employed or have a corporation or LLC tax return those deductions still exist and are basically unchanged.
Investment Expenses: Also gone are deductions for:
On a side note, removing these deductions doesn’t break my heart, since most of my audits in the last few years have been on these issues. Rarely do I get audit on mortgage interest, SALT or charity.
Randall S. van Reken, EA, CFP, ATP
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