I think that was included.Xan wrote:That could really upset the balance of things, if there isn't grandfathering for divorce agreements already in place.Libertarian666 wrote:I'm not sure that actually screws divorced people to the extent you suggest, since the current rule is that the payer can deduct alimony but the recipient has to pay taxes on it. Perhaps the new law says that the payer can't deduct it but the recipient doesn't have to pay taxes on it. This is how child support works at present, I believe.ochotona wrote:THEY ROYALLY SCREWED DIVORCED PEOPLE. Maybe because divorce isn't Christian. But sexually assaulting under-age teens is A-OK.
From Schwab:
Numerous other deductions and tax credits repealed: The bill repeals deductions for tax preparation, moving expenses and alimony payments, among others.
Yes, that seems to be what they are doing, at least according to this article: https://www.cnbc.com/2017/11/03/tax-ref ... ouses.html
New Tax Plan Deductions
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Re: New Tax Plan Deductions
Re: New Tax Plan Deductions
Has anybody figured out what the current plan does for pass-through businesses?
Based on what I've been able to figure out: If you own an LLC/sole proprietorship/any business other than a corporation taxed at ordinary income rates, you get to deduct 20% of business income, UNLESS your business is service based and does not own property or have employees, AND the owner's income is greater than $157K (single) or $315K (MFJ). This applies also to income from an REIT.
I get confused with that service etc exemption, because nothing I've read is very clear on the subject. The only thing I know for sure is that an enormous set of tax loopholes has just been created, that Bob Corker and Trump are dancing with joy right about now, and that the stampede of high income earners forming new corporations is going to be deafening. It would be nice for us small fry to figure out if we can partake of the coming largesse as well.
Based on what I've been able to figure out: If you own an LLC/sole proprietorship/any business other than a corporation taxed at ordinary income rates, you get to deduct 20% of business income, UNLESS your business is service based and does not own property or have employees, AND the owner's income is greater than $157K (single) or $315K (MFJ). This applies also to income from an REIT.
I get confused with that service etc exemption, because nothing I've read is very clear on the subject. The only thing I know for sure is that an enormous set of tax loopholes has just been created, that Bob Corker and Trump are dancing with joy right about now, and that the stampede of high income earners forming new corporations is going to be deafening. It would be nice for us small fry to figure out if we can partake of the coming largesse as well.
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Re: New Tax Plan Deductions
The word is "misandry".MangoMan wrote:Tech, I'm surprised you didn't point out the obvious misandriousness [is that even a word?] of this. It generally screws men [who are almost always the payers of the alimony] to the benefit of women [the usual recipients]. If you single guys were looking for yet another reason not to involve the state in your marriage, here you go.Libertarian666 wrote:I think that was included.Xan wrote:
That could really upset the balance of things, if there isn't grandfathering for divorce agreements already in place.
And actually I'm happily married... but if I were a young man, I would emigrate to a less misandrous country, knowing what I know now.
Re: New Tax Plan Deductions
With the old tax system i would have started itemizing because i just bought a house and give to charity each year (almost entirely to the church). Now itemizing with the standard deduction so high only would make some of those charitable contributions into actual dollars that reduce my overall taxes.
My goal is to now donate through my father (legally). I gift him money and he donates into a charitable fund to be released throughout the year. You can take the tax deduction now and distribute it later (even a year later). I claim his higher tax bracket and through us pooling our charitable giving, it makes almost all of it reduce overall tax burden. I then end up filing a standard deduction and my father files itemized with our pooled charitable giving (can even do multiple years of giving in one year and have it distributed over multiple years). My father would then shift off every other year of filing itemized (if we're pooling charitable giving), or standard.
More complicated than it had to be but there is always a way to be smart about taxes. I just was hoping tax reform wasn't going to make things harder hah.
My goal is to now donate through my father (legally). I gift him money and he donates into a charitable fund to be released throughout the year. You can take the tax deduction now and distribute it later (even a year later). I claim his higher tax bracket and through us pooling our charitable giving, it makes almost all of it reduce overall tax burden. I then end up filing a standard deduction and my father files itemized with our pooled charitable giving (can even do multiple years of giving in one year and have it distributed over multiple years). My father would then shift off every other year of filing itemized (if we're pooling charitable giving), or standard.
More complicated than it had to be but there is always a way to be smart about taxes. I just was hoping tax reform wasn't going to make things harder hah.
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Re: New Tax Plan Deductions
What a mess for charitable donations. It would be better to just not allow deductions for charitable donations at all and lower the tax rate some if they can.
Personally I don't care about the deduction but you feel like you have to jump through the tax hoops if it is available. Maybe I am wrong but ultimately I don't believe anyone makes a charitable donation because of a tax deduction.
Personally I don't care about the deduction but you feel like you have to jump through the tax hoops if it is available. Maybe I am wrong but ultimately I don't believe anyone makes a charitable donation because of a tax deduction.
Re: New Tax Plan Deductions
I'm sure that many people who intend to make significant charitable donations are inclined to at least look at the timing of donations at this time of the year. For example, if one is going to donate $1,000 to a charity and it's already December, it's likely that person will make a rough calculation as to whether it's more beneficial in tax terms to pull the trigger right away or wait until after January 1st. But I am one of the world's shallowest humans so maybe it's just me who thinks this way.whatchamacallit wrote:Maybe I am wrong but ultimately I don't believe anyone makes a charitable donation because of a tax deduction.
Re: New Tax Plan Deductions
I agree with you. I think most donating to charity would look for the way that helps them from a tax way the best. That way it "costs less" to donate a set amount, or it allows you to donate more than what you would have normally due to the tax savings. Either way.barrett wrote:I'm sure that many people who intend to make significant charitable donations are inclined to at least look at the timing of donations at this time of the year. For example, if one is going to donate $1,000 to a charity and it's already December, it's likely that person will make a rough calculation as to whether it's more beneficial in tax terms to pull the trigger right away or wait until after January 1st. But I am one of the world's shallowest humans so maybe it's just me who thinks this way.whatchamacallit wrote:Maybe I am wrong but ultimately I don't believe anyone makes a charitable donation because of a tax deduction.
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Re: New Tax Plan Deductions
I made the family go through closets the past few days and we donated a bunch, to get it into this year. I like donating, I like getting rid of stuff, and certainly the deduction helps. Next year it is likely I will have a huge dropoff in the stuff I donate, vs. say, trying to sell.Greg wrote:I agree with you. I think most donating to charity would look for the way that helps them from a tax way the best. That way it "costs less" to donate a set amount, or it allows you to donate more than what you would have normally due to the tax savings. Either way.barrett wrote:I'm sure that many people who intend to make significant charitable donations are inclined to at least look at the timing of donations at this time of the year. For example, if one is going to donate $1,000 to a charity and it's already December, it's likely that person will make a rough calculation as to whether it's more beneficial in tax terms to pull the trigger right away or wait until after January 1st. But I am one of the world's shallowest humans so maybe it's just me who thinks this way.whatchamacallit wrote:Maybe I am wrong but ultimately I don't believe anyone makes a charitable donation because of a tax deduction.
Re: New Tax Plan Deductions
Looks like I was wrong about employers immediately passing the tax cut benefits on to their employees. At least some of them are....
http://www.nationalreview.com/corner/45 ... investment
http://www.nationalreview.com/corner/45 ... investment
Re: New Tax Plan Deductions
I dug deep and gave my 2018 church contribution this month. Last time I'll be able to itemize it.