Yes there is more, much more… and remember at Bourke Accounting we are here to help you sort through all of the changes. Call us today at 502-451-8773 or stop by for a visit.

Estate Tax Exemption

Alternative Minimum Tax

  • The phaseout thresholds are increased to $1,000,000 for married taxpayers filing a joint return, and $500,000 for all other taxpayers (other than estates and trusts). These amounts are indexed for inflation.
  • Individual exemption amount is $70,300
  • Married Filing Jointly & Surviving Spouses exemption amount is $109,400
  • Married Filing Separately exemption amount is $54,700

Itemized Deductions

  • With the exception of state and local income taxes, mortgage interest, medical expenses, disaster losses, charitable contributions and other deductions not subject to the 2% floor, all other itemized deductions are repealed (meaning gone). The overall limitation on itemized deductions for upper income individuals is also repealed.

State and Local Taxes

  • Taxpayers can claim a deduction for a combination of state and local income tax, sales tax, or real property tax. The aggregate deduction is capped at $10,000. Foreign real property taxes are no longer deductible.
  • Under this provision, an individual may not claim an itemized deduction in 2017 on a pre-payment income tax for a future taxable year in order to avoid the dollar limitation applicable for taxable years beginning after 2017.

Medical Expenses

  • For 2017 through 2018, expenses exceeding 7.5% of income are deductible; that percentage increase to 10% in 2019. Under this provision, these thresholds also apply for determining AMT.

Charitable Contributions

  • Taxpayers who are able to itemize deductions can include charitable contributions. The current limitation of 50% of income in increased to 60%.
  • The standard mileage rate with regard to the use of a taxpayer’s automobile for charitable purposes is indexed for inflation in taxable years beginning after December 31, 2017.

Mortgage Interest

  • The deduction for mortgage interest is capped at $750,000 of debt. The interest deduction is allowed on a first or second home. The interest on home equity loans will no longer be deductible. Interest on up to $1 million of acquisition debt for loans prior to December 15, 2017 is grandfathered.

Casualty Losses

  • Deductions for unexpected losses to personal property are no longer deductible unless covered by specific federal disaster declarations.

Teacher Expenses

  • The bill retains the present law above-the-line deduction of $250 (indexed for inflation) for out-of-pocket expenses.

Moving Expense Reimbursements

Yes there are more, so stay tuned for Part 3….