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Thanks, yeah I remember that now (only on divorces that occur after Dec 2017).Quote:
Originally Posted by RazorCat
But, since I would be itemizing anyway, regardless of the doubling of the standard deduction, this is still a tax increase form me by a few thousand dollars, since I can no longer deduct state income taxes, correct?
You can still deduct up to 10K in state+local+ property taxes, the way I read it.
As I understand, a combination of property, sales, and state income tax up to $10,000.00 is still deductible. Don’t know beyond that.
I am looking forward to this bill. Not just due to the slight change in tax bracket, but mainly due to the nearly doubling of the standard deduction. I rent and never can itemize enough to reach the standard deduction. So everything I donate is just a free giveaway. Doubling the standard deduction will have a big effect since my margins from month to month are razor-thin. I may finally climb out of this decade-long hole I created when I bought a home in CA with an ARM.
Absolutely right! Deduction not exemption.Quote:
Originally Posted by evilanne
I believe you are also right about the passive rental income, but this pass-through profits still have me confused.
Watch out for that ‘doubling of standard deduction’ part....it does double, but the personal exemption goes away, as previously noted. Net result, standard deduction is only slightly higher than before (or even less, depending on what you had as personal exemptions before. All gone now.)Quote:
Originally Posted by MrBowl
To be honest I have been following the tax plan kind of on the fringe since I have no control over what happens. But, doesn't some of these deductions disappear by 2020?
“Most Americans will pay less in taxes until 2026. The final plan lowers the tax rates for each income level and nearly doubles the standard deduction (while also scrapping the personal exemption). The result is that the vast majority of Americans will see their tax bills drop next year. Trump is fond of saying the "typical" family will save $2,000, but the reality is the amount will vary greatly depending up the size, location and circumstances of each family. The bill will also increase the number of Americans who owe nothing in taxes from 44 percent today to 47.5 percent after the plan tax effect on January 1, 2018. But all of the individual tax cuts are scheduled to go away after 2025. Republicans opted to make tax cuts for families temporary and reductions for businesses permanent.”Quote:
Originally Posted by nasa1974
https://www.google.com/amp/s/www.was...what-is-in-it/
if you like your tax plan, you can keep your tax plan.
This is one of those times where I look at how it affects me directly. Hell, I got a 2% raise this year, and it appears a 3% cut in my taxes. That's a noticeable raise in pay.
I'll take what I can get after spending my last 3 working years without a raise or a recognizable tax cut.
Guess I'll find out in February.
Quote:
Originally Posted by uscfanhawaii
I'm not sure on the amounts of these aspects so I guess we'll see. With a wife and one child I could also be helped by an increase in the child tax credit?
bottom line...I'll get on my 2017 taxes fairly early after the near year, but I don't think I'll notice a whole lot of difference from this bill until 13 months from now when I do my 2018 taxes. In the meantime I might have to adjust my withholding amount early in 2018 to keep it somewhere near the 2017 levels. I really can't financially handle a surprise April 15 bill instead of a refund.
A couple of things I heard today on MSNBC is individual rates expire in 2026.Quote:
Originally Posted by nasa1974
And the maximum allowed for mortgage interest deductions were raised to $750,000.00 (from 500k initially).
Both of these were compromises inserted in the final bill.
Just what they stated.