Big changes in the new tax law for 2018. The following are the deductions that are disappearing :
Dependency deduction for taxpayer spouse children and others. Senior citizen extra deduction was repealed.
State taxes capped at $10,000 for real estate, income or sales tax....
Mortgage loan limits drops from 1.1 million to $750,000 for residential mortgage interest deduction.
Employee business expenses and miscellaneous itemized deductions have been eliminated. Including tax preparation fees!!!
Casualty loss deductions limited to presidential disaster areas only. Personal losses to fire or burglary not deductible
Educator supplies deductions
These changes are for individual and joint filers only.
Posting the positive changes later!
IRS has announced that only real estate tax that has been assessed for 2018 may be deducted if paid by 2017. For my NJ clients, the first two quarters of 2018 have been assessed and you may pay and deduct these in 2017 if you wish. Estimated tax bills are not deductible in 2017.
Have a safe and happy new year.
IRS has announced that tax returns that include form 4562 (Depreciation) and form 3800 (Tax Credits) might have to wait until the end of February or early March to file. Since business returns are due 3/15, do not delay in visiting your CPA, as we will be really busy in March. Thanks, Congress, for passing a retroactive tax bill in such a timely manner!
Corporate tax returns are due by 3/15/11, and the IRS has not yet approved all of the tax forms for us to file as of today. Do not be surprised if there are a lot of extensions this year. It's a tax season gift for us all.
Recent changes in professional standards as promulgated by the AICPA now require all CPA firms that prepare compiled financial statements to obtain a written understanding with the client. We have mailed engagement letters to comply with this requirement recently. If anyone has questions about this requirement, the AICPA website has information, or call/email us. - Ron Cohen, CPA