The Tax Cuts and Jobs Act that passed December 2017 is about to take affect and many are worried how these changes could affect them. The biggest concerns are for are:

Homeowners:

• That have high balances on their loans
• Have non-qualified home equity debt
• Have mortgage loans above $750,000 and originated after December 15, 2017
• Have an acquisition debt greater than $1 million from loans originated before December 15, 2017
• Have a HELOC that was not used for acquisitions, building or improvements on their principle home will find that the interest is no longer deductible

Itemizes:

• Who have combined state and local taxes greater than $10,000
• Pay foreign property taxes which is no longer deductible under the new tax laws
• Have employment expenses such as in-home office, mileage, travel, meal and entertainment as these are no longer permitted

Taxpayers with Dependents:

• Will loose the dependent exception and Child Tax Credit for all dependents 17 years of age and older

Divorcing Taxpayers:

• Who pay alimony and were divorced after Dec. 31, 2018, the alimony deduction will no longer be a valid deduction
• Who receive alimony and will have a final divorce decree before Jan. 1, 2019, alimony will now be claimed as ordinary income

More changes are coming, and the confusion we are seeing now is only beginning. Make sure that your business and personal taxes are correct by seeking tax advice to help minimize your tax bill this year. At ABS-Carolinas, we stay up-to-date and educated on all tax laws and will always be here to help you navigate your way through the murky waters of the IRS. Plan now and schedule ahead to see what you need to do now to be ready for tax season 2018.