A lot has been made of the all the tax changes this year, thanks to the Tax Cut and Jobs Act. Many of the laws have been altered and some have been completely eliminated. Certain credits have been cut, while others have been increased. The same is true for deductions. Many of the usual deductions are still available, while others have been reduced. And some have been completely cut.
So which deductions are gone that you need to be aware of? If you haven’t been paying attention, then you might be in for some unpleasant surprises. For starters, the personal exemption no longer exists. The Standard deductions were raised to make up for this, but for larger families, that might not help.
Additionally, the state and local tax deductions have been capped at $10,000. Before the new law, the deduction amount was unlimited. This will have a big affect on people who live in high tax states.
Furthermore, you can no longer claim interest from home equity loans unless you use the money to improve the primary residence for which the loan was secured.
There are several other miscellaneous deductions that have also been eliminated, including unreimbursed work-related expenses. Moving expenses are also gone unless you’re in the military and you’re required to move. And don’t expect to deduct any expenses for tax preparation, either. That deduction is no longer available.
The post Don’t Expect to Find These Deductions When You File This Year first appeared on Advisors to the Ultra-Affluent – Groco.