New Taxes And You
This is summarized from an email one of my banks sent to me. It is not oriented to agriculture, it is more to the salaried or retired crowd. It is for 2018 to 2025.
Most individual tax rates down. Standard deductions up. AMT up so it will affect fewer. State and local tax deductions on the fed are capped.
This bank suggests deferring income to 2018 if your rate goes down. Consider pre-paying 2018 property tax, make big purchases now if you would lose state and local tax deductions next year, and make charitable donations this year rather than next if you are going to make them. Of course, this all depends on your situation.
Child tax credit goes up, dependent tax credit of $500, and 529 plans can be used for K-12.
Medical expense threshold is 7.5% for 2017 & 2018. It goes back to 10% in 2019.
Home interest on new-home loans capped to loans of $750,000. Home equity interest deductibility repealed.
Something on Roth IRA.
This is just a short summary of what I got from a non-ag bank. I have no knowledge of the details, and we don't have much time to act. In my case, I don't think I have any immediate actions to take but I'll be watching.
Do you think it will affect rural America?
Re: New Taxes And You
My farm tax accounted tells me Ag farm ground taxes can still be deducted for 2018.
Would only apply to my farm house if the taxes are over ten thousand on that. Ha ha
Not even close. So business as usual here?