Big Changes are Going into Effect in 2018

Most individual tax provisions are temporary. They expire after 2025. Let’s start with individual taxes. Standard deductions nearly double. The new law pares back many deductions claimed.

  • Personal exemptions for individual filers and their dependents no longer exist.
  • State and local taxes are being squeezed. Deductions include residential property and income or sales taxed up to a $10,000 cap.
  • Taxes paid on rental realty can be taken in full on Schedule E.

Corporate tax changes are made permanent!

Other write-offs are eliminated. Job-related moves, except for the military. All miscellaneous write-offs subject to the 2% of AGI threshold:

  • Employee business expenses
  • Brokerage and IRA fees
  • Hobby expenses
  • Tax return preparation costs
  • Personal casualty losses eliminated

The charitable contribution write-offs is preserved with some changes:

  • AGI limitations on cash donation is hiked from 50% to 60%
  • Medical expenses deduction is enhanced
  • Temporarily lowered the AGI threshold on Schedule A for 10% to 7.5%