Let’s start with individual taxes. Standard deductions nearly double to $24,000 for couples, $12,000 for singles and $18,000 for household heads. Folks age 65 or up and blind people get $1,250 more per person ($1,550 if unmarried). Given these much higher amounts, it’s a sure bet that far fewer people will itemize.
The new law pares back or axes many deductions claimed by individuals.
Personal exemptions for individual filers and their dependents are repealed.
Home mortgages are nicked. Interest can be deducted on up to $750,000 of new acquisition debt on a primary or second residence…down from $1 million. The new limit generally applies to mortgage debt incurred after Dec. 14, 2017. Older loans…and refinancings up to the old loan amount…get the $1-million cap. No write-off is allowed after 2017 for interest on existing or new home equity loans.
The popular deduction for state and local taxes is being squeezed. You can deduct any combination of residential property taxes and income or sales taxes up to a $10,000 cap. Property taxes remain fully deductible for taxpayers in a business or for-profit activity, so taxes paid on rental realty can be taken in full on Schedule E.

Tax Law Changes 1 of 8

by | Jan 11, 2018 | Tallahassee Tax Service, TallyTaxMan | 0 comments