2018 Tax Law Changes: Deductions, Limitations…
As you have heard, there have been significant tax law changes for 2018. We have been carefully studying the changes, and know that it will affect all of our clients.
Here are some of our thoughts on the most significant changes:
- Your deductions will decrease – this is caused by a limitation on the state and local taxes that can be deducted, and because there are no miscellaneous deductions (investment costs, unreimbursed business expenses and tax preparation fees).
- Your standard deduction will increase which will result fewer people itemizing their deductions.
- If you bought a house or refinanced your mortgage after December 2017, the mortgage limitations changed to a maximum of 750,000, plus 100,000 if you have a line of credit. If you have or own a business, the rates may be less but there are some significant limitations which can impact your returns.
- If you are in real estate, there are deductions now available to you that may reduce your taxes.
- The Alternative Minimum Taxes changed – this will result in less people being subject to this extra tax.
- People which have had a reduced withholding, may result in additional taxes owed at the end of the year.
There are many more changes that may affect you.
We are here to answer your questions. Please contact Tony Marini or Rob Lynch for specific questions!
Telephone (781) 871-5850