Individual Tax Planning, Sept 2018

What are you missing? Too often, unfortunately, my clients come in for  tax preparation without qualifying for tax benefits or without proof.  So be sure you have both for some of my favorite itemized deductions: medical, taxes, mortgage, investment interest, charitable. Keep those receipts and proofs of payment.

Medical expenses for 2018-2019 must exceeding 7.5 percent of adjusted gross income. May include a portion of doctor prescribed home improvements

State and local taxes. You can deduct up to $10,000 in combined state and local income, sales or property taxes. With receipts you can deduct actual sales taxes. Don’t forget  sales tax on boats. cars, home improvements.

Mortgage interest You may deduct interest on 2018 mortgage debt borrowed after 12/15/17 to buy a home up to $750,000. The $1,000,000 limit applies to former debt. Heloc interest new or old is not deductible unless used to purchase your home, a rental property or a business property.

Net investment interest.  Such as margin interest, is deductible up to investment income (reduced by investment expenses). You may elect to count capital gains and qualified dividends.

Charitable deductions. Clients don’t claim enough, like the value of appreciated investments, out of pocket expenses for charitable activities, IRA gifts to charities for taxpayers over 70 1/2, fair market value of items given. We should discuss.

Miscellaneous deductions repealed. In 2018 you can no longer deduct employee deductions, tax preparation fees or investment expenses. I can help you determine if they qualify as business expenses.

About Wis Laughlin

I help clients with tax preparation and IRS representation, estate planning, and complex contracts, including LLC's. As a former IRS tax attorney in their National Office. Law.com picked Wis in 2017 and several prior years as one of the Top Tax and Estate Lawyers in Tennessee. I am your advocate, not your accountant. I don't tell you what you can't do. I show you how to do it.
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