New United States Tax Law (Part 1)

In the next few posts, we would like to provide a brief overview of the new United States Tax Bill.

Here are some of the basics for Individuals:

Effective Date: January 1, 2018

Expires: January 1, 2026

Property Taxes: (applies to the United States only) plus state and local income taxes are capped at $10,000 per year.

Standard Deduction:

Single: $12,000

Head of Household: $18,000

Married (filing joint): $24,000

2% Itemized Deductions that are no longer deductible:

Tax Preparation Fees

Unreimbursed Business Expenses

Continuing Education Expenses

Licensing Fees

Investment Expenses

Hobby Expenses

IRA Losses

Safe Deposit Fees

IRS Trustee Fees

Professional Dues

Home Office Expenses

Depreciation on Computers

$250 educator expense that exceeds the adjusted gross income deduction amount

Job search costs

Subscriptions

Unreimbursed Business: such as travel, meals, entertainment, gifts, and lodging

Union Dues

Unreimbursed business work clothes

Unreimbursed business tools and supplies

Alimony is no longer a deduction for paying ex-spouse and no longer income to recipient ex-spouse, but only to those who divorce after December 31, 2018.

Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon.

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