Tax changes passed last week are the most sweeping in a generation, and they aren’t simple. Which is why it pays to consult experts like the Fort Lauderdale accountants of Sterling Accounting to see how these changes will affect you and your business.
Here are some general outlines of what you can expect from the tax overhaul, as reported by the New York Times:
- For homeowners, the tax overhaul could increase housing costs because of changes to mortgage interest deduction rules. Next year, state and local income taxes and property taxes added together will no longer be deductible beyond $10,000. You also won’t be able to deduct interest for mortgages above $750,000.
- Parents will now be able to use tax-protected 529 investment accounts that had been meant for college savings to pay for their children to attend private elementary and secondary school.
- The bill provides incentives for employers to provide parental leave. But the incentives only last through 2018 and 2019.
- If you own a business, you will be able to start deducting 20 percent of income from partnerships, S corporations and sole proprietorships. Those who make their living from contracting jobs such as uber driving or freelance web design will be able to take advantage of this deduction.
- The amount you can inherit without paying tax is expected to double.
Those are just some of the changes in the tax code, and how it will affect each person will vary. That’s why it’s best to consult with the expert Fort Lauderdale accountants at Sterling Accounting.
Whether you need a simple 1040EZ tax filing or a 1040, we can handle it all for you. We provide innovative solutions for tax issues to minimize your tax liability and find deductions commonly overlooked. We stay up-to-date and well informed on all tax laws and legislation. We also specialize in areas such as business bookkeeping.