QuickList for 2018
The Tax Cut and Jobs Act of 2017 has brought these changes
- Medical/dental expense threshold remains at 7.5% AGI for one more year, reverts to 10% AGI in 2019.
- Tax category (real estate tax, state tax, excise tax) limited to 10K.
- Limit on NEW mortgages: deductible interest on up to 750K, existing loans retain 1M debt limit.
- No deduction for interest on equity loans/LOCs unless used for home improvements.
- No employee business/investment deductions (the "greater than 2% AGI" category).
- No theft losses; only casualty losses in presidential-declared disaster areas.
- Phaseout of itemized deductions at higher income eliminated.
- Elimination of personal exemptions but almost doubling of standard deductions.
- Child tax credit doubled and available to higher-income taxpayers.
- Other dependent $500 credit available (older dependents), nonrefundable credit.
- Health care penalty eliminated in 2019.
- Moving expenses only for military.
- As of 2019, new alimony contracts not a deductible expense nor taxable income.
- AMT to affect fewer taxapayers due to increases in its exemption allowance.
- 529 plan distributions can be used for elementary/high school (10K cap per student).
- Estate/Gift exemption doubled to $11,180,000 (very few will be subject to tax).
- 100% bonus depreciation through 2022, then allowable amount decreasing 20%/year.
- Business entertainment deduction (Schedule C) eliminated. Business meals remain.