The Internal Revenue Service has estimated it may need nearly half a billion dollars more over the next two years…to implement the sweeping tax overhaul. IRS funding has shrunk by 20 percent since 2010, but the agency says it needs additional funds for answering phone calls, creating new tax forms, and training employees on the latest changes. Though the tax overhaul was originally touted as a way to simplify the code, in some case Congress added new complications. For instance, the law reduced the home mortgage interest deduction from $1 million to $750,000 for loans that closed after December 5, 2017, but refinancing and loans that were in the process before Dec. 15 are exempted. The problem, however, is that the IRS generally does not know when a mortgage closes, the terms of a refinancing, or the date of a purchase contract.
At Bourke Accounting we can answer your questions re any tax issue you may have. Give us a call today at 502-451-8773 or come visit us. See you soon!