Tax Cuts and Jobs Act of 2017: Deductions
The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.
There have been significant changes to deductible expenses under the new tax law:
- Mortgage interest deductions for new mortgages are now available only for up to $750,000 for residential mortgages. Previously, the deduction was available for up to $1,000,000.
- Home equity interest is no longer deductible.
- The charitable contribution itemized deduction remains, and one can now deduct as much as 60% of adjusted gross income (up from 50%) for contributions to qualified public charities.
- Medical expenses in excess of 7.5% of adjusted gross income are still deductible. Previously, this deduction was up to 10%.
- Casualty losses are no longer deductible, except within federal-declared disaster areas.
- Itemized deductions for state and local taxes now cannot exceed $10,000 on a single or joint return.
- There are no longer deductions available for investment advisor fees, tax preparation fees, unreimbursed employee expenses, or safe deposit box fees.
Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.