Several other write-offs are eliminated: Deductions for job-related moves, except for the military. All miscellaneous write-offs subject to the 2%-of-AGI threshold, including employee business expenses, brokerage and IRA fees, hobby expenses and tax return preparation costs. Theft losses. Alimony for post-2018 divorce decrees, although it’s good news to recipients, who will not be taxed on alimony they receive. Plus personal casualty losses, excluding those in presidentially declared disaster areas.
The charitable contribution write-off is preserved, with some changes. The AGI limitation on cash donations to qualified charities is hiked from 50% to 60%. But gifts to colleges in exchange for choice seating rights at athletic events are targeted.
The medical expense deduction is enhanced. Not only have lawmakers opted to keep this popular write-off, but they’ve also temporarily lowered the AGI threshold for deducting 2017 and 2018 medical expenses on Schedule A from 10% to 7.5%.
The write-off for personal gambling losses to the extent of winnings survives.
Upper-income individuals can finally say good-bye to a sneaky tax hike:
The phaseout of itemized deductions is scrapped under the new law.

Tax Law Changes 2 of 8

by | Jan 16, 2018 | Tallahassee Tax Service, TallyTaxMan | 0 comments