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The Changing World of Tax

November 18, 2018 | By More

The Changing World of Tax

taxBy now you may have heard that there were some tax law changes effective 1/1/2018. In fact, it is the most significant tax law change since 1986! That being said, there is only ONE month left to complete some tax planning.

If you have not already done so, now is a good time to calculate your estimated tax for 2018. Here are just some of the changes to the most common individual tax return items:

  1. Change in how alimony is reported and taxed
  2. Increased standard deduction
  3. Elimination of the personal exemption
  4. Increased income limitation for the child tax credit
  5. Change to itemized deductions:
    • Limit on state income and real estate taxes
    • Change in mortgage interest limitation
    • Change in casualty and theft loss deductions
    • Elimination of miscellaneous itemized deductions
  6. Reduction in tax rates
  7. Increase in retirement deduction limits
  8. New Qualified Business Income (QBI) deduction for small business owners

Here are just some of the changes to the most common business tax return items:

  1. Increase in IRC §179 deduction and $ value of placed in service assets
  2. Change in meals and entertainment deductions
  3. Change in tax rates
  4. Elimination of Alternative Minimum Tax (AMT)
  5. Change in luxury auto depreciation limits

The above list is not all inclusive and not all items will apply to everyone, however, it will give you a forewarning on what to expect on your tax return in January 2019. The above is to provide general information but should not be solely relied upon in the completion of your tax return or for tax planning. As with most items related to tax, there are exceptions and limitations.

Contributed by Michele Sheerahamed – CPA
Michele Koscielniak CPA, LLC is located in Lake Worth, Florida. For more information or to contact Michele Sheerahamed, visit https://www.michelekcpa.com

Article information should not be used exclusively to make legal, financial or tax decisions. Because laws and rules can change frequently, topics may not always be updated to reflect these changes or may not apply to your unique situation. It’s prudent to seek out the advice of a professional for your specific needs.

Category: Estimating Taxes

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