Medical Expense Deduction Threshold Temporarily Reduced
A deduction is allowed for the expenses paid during the tax year for the medical care of the taxpayer, the taxpayer’s spouse, and the taxpayer’s dependents to the extent the expenses exceed a threshold amount. To [...]
Mortgage and Home Equity Indebtedness Interest Deduction Limited
Under pre-Act law, the taxpayer could deduct as an itemized deduction qualified residence interest, which included interest paid on a mortgage secured by a principal residence or a second residence. The underlying mortgage loans could represent acquisition [...]
State and Local Tax Deduction Limited
Under pre-Act law, taxpayers could deduct from their taxable income as an itemized deduction several types of taxes paid at the state and local level, including real and personal property taxes, income taxes, and/or sales taxes. New [...]
Child Tax Credit Increased
Under pre-Act law, a taxpayer could claim a child tax credit of up to $1,000 per qualifying child under the age of 17. The aggregate amount of the credit that could be claimed phased out by [...]
Capital Gains Provisions Conformed
The adjusted net capital gain of a non-corporate taxpayer (e.g., an individual) is taxed at maximum rates of 0%, 15%, or 20%. Under pre-Act law, the 0% capital gain rate applied to adjusted net capital gain [...]
Personal Exemptions Suspended
Under pre-Act law, taxpayers determined their taxable income by subtracting from their adjusted gross income any personal exemption deductions. Personal exemptions generally were allowed for the taxpayer, the taxpayer’s spouse, and any dependents. The amount deductible for [...]
Standard Deduction Increased
Taxpayers are allowed to reduce their adjusted gross income (AGI) by the standard deduction or the sum of itemized deductions to determine their taxable income. Under pre-Act law, for 2018, the standard deduction amounts, indexed to inflation, [...]
New Individual, Estate and Trust Rate Schedules
With the new tax law changes, we will be posting a series of of updates outlining all the changes that will take place. If you have any questions, please contact your Linkenheimer CPA. FOR MARRIED [...]
IRS FAQ on Casualty Tree Loss
We've had a number of clients ask us questions since the wildfires on tree loss and what that means in terms of determining a casualty loss on property. Below is an FAQ from the IRS [...]
Loss of Income Due to Business Interruption
The North Bay fires have caused unprecedented losses and hardship for so many fellow Sonoma County residents and business owners. While the priority is to assess physical damages and rebuild, there is an element of [...]