Changes That Will Affect Your Taxes
The Tax Cuts and Jobs Act of 2017 is the biggest tax reform in the last 31 years, and it’s comprised of 186 pages and no fewer than 130 new tax provisions.
• HELOC interest is only deductible if the line of credit was used to buy, build, or substantially improve the home that secured the loan. • The child tax credit is now worth $2K per qualifying child, and the income phaseout now starts at $400K for joint filers.
Here are just a few that will affect your 2018 taxes:
• Your new Form 1040 will look like a giant postcard, but will be followed by 6 new pages (Schedules 1–6) to fit all the info that was on the prior 1040.
• We have new tax rates and brackets, but not everybody will see bigger refunds or lower tax bills.
• Remember the personal exemptions that meant a little over $4K non-taxable income PER family member? They are completely GONE.
• Now you can use funds from a 529 Plan to pay for elementary and secondary private and parochial school tuition (up to $10K per kid/year).
• Standard deduction went up to $24K for MFJ, or $12K for single taxpayers.
• Self-employment income on LLC returns is scrutinized even more by the IRS. Also watch out if you have consistent losses.
• If you itemize, your deduction on state, local, and property taxes you paid is limited to only $10K.
• All entertainment expenses are NO longer deductible, including tickets, concerts, sporting events, golf outings. But (most) business meals and beverages remain 50 percent deductible.
• No big changes regarding gifts to charities, except you can deduct donations up to 60 percent of your adjusted gross income and some of the donations need appraisal documents attached.
• Depreciation rules got even more complicated.
• Miscellaneous itemized deductions are eliminated (ex. the deduction of unreimbursed employee expenses).
• Watch for a new deduction called Section 199A Qualified Business Income Deduction. If it applies to you and it’s calculated correctly, it can mean a 20 percent lower tax bill on your business income!
• Home mortgage interest is only deductible on qualified residence loans up to $750K (MFJ) or $375K (MFS).
Holiday Roast Prime Rib Looking for an easy holiday roast that still feels elegant enough for the occasion? Look no further than this delicious prime rib flavored with garlic, thyme, and red wine.
INGREDIENTS •
• •
4 cups beef stock
1 bone-in prime rib (6–7 pounds)
1 tablespoon fresh thyme, chopped Salt and freshly ground pepper, to taste
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8 cloves garlic, thinly sliced
•
2 cups red wine
DIRECTIONS 1. 30 minutes before cooking, remove roast from fridge and let sit until it reaches room temperature. 2. Heat oven to 350 F. 3. Make small slits in prime rib and stuff with slices of garlic. Liberally season with salt and pepper. 4. Place a rack inside a roasting pan and roast prime rib for 2 hours, until medium-rare. 5. To make au jus, place roasting pan with drippings from roast over 2 burners on high. Add wine and scrape pan as liquid reduces. Add beef stock and cook until reduced by half. Finally, sprinkle in thyme. 6. Slice roast and serve topped with au jus
Inspired by Food Network
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