One gotcha I found with my taxes (when doing the estimates for the
extension) is that many preparers and tax software don't handle the
pass-through entity deduction correctly.
If you have a s-corp or a partnership or a LLC or similar which passes
through it's income to you, then in many cases up to 20% of this can
be written off regardless of what else is going on on your return.
I.E. it's a separate deduction from either your standard or itemized
deduction.
I though I was getting hit really hard until I figured out that this
hadn't been applied correctly.
On Sun, Mar 31, 2019 at 8:32 PM Ken Hohhof <af...@kwisp.com> wrote:
>
> All state and local taxes (SALT) limited to $10K deduction so income tax,
> sales tax, and property tax. Trust me, it's not hard to exceed $10K in
> property taxes alone. Also property tax is typically local, not state, and
> in many areas is the primary means of funding public schools.
>
> Real estate tax on farmland used for crops and livestock is still 100%
> deductible.
>
>
> -----Original Message-----
> From: AF <af-boun...@af.afmug.com> On Behalf Of Bill Prince
> Sent: Sunday, March 31, 2019 8:41 PM
> To: af@af.afmug.com
> Subject: Re: [AFMUG] OT: Tax cut my ass...
>
> Yeah, our taxes don't reach that threshold. Mainly because we bought our
> house over 2 decades ago, and Prop. 13 keeps the valuation from rising too
> fast.
>
>
> bp
> <part15sbs{at}gmail{dot}com>
>
> On 3/31/2019 6:22 PM, Seth Mattinen wrote:
> > On 3/31/19 5:03 PM, justsumname wrote:
> >> The IRS website shows what changed. Tax rates did in fact go
> >> down... but deductions were eliminated and/or capped lower and so
> >> that's where the sticker shock is coming from. Itemized deductions
> >> were capped at 10k for example, if I remember correctly.
> >>
> >> Two observations ... a very broad brush summary:
> >>
> >> --no longer are people with big mortgages being tax-subsidized by
> >> people with smaller mortgages --no longer are States with low(er)
> >> property taxes tax-subsidizing States with high(er) property taxes
> >>
> >
> >
> > State and local income tax is capped at $10k deduction.
> > https://www.irs.gov/newsroom/tax-reform-brought-significant-changes-to
> > -itemized-deductions
> >
> >
> > Mortgages are capped at $750k for new mortgages after Dec 31, 2017.
> > https://www.irs.gov/publications/p936
> >
>
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