During tax season the most common question asked was about the tax reform. How will it affect my 2018 tax return? Which expenses are still allowed? How can I plan to protect my self from owing a lot of money next year. Over the next number of months we will be going through certain changes made to the tax law.
Change #6 – Charitable Contribution:
OLD LAW:
Under the old law, taxpayers who qualified for itemized deductions were allowed to deduct up to 50% of their adjusted gross income (AGI) for contributions made to charity during the year, with the remainder carried forward for up to 5 years.
NEW LAW:
Under the new law, taxpayers who qualify for itemize deductions are allowed to deduct up to 60% of their adjusted gross income (AGI) for contributions made to charity during the
year, with the remainder carried forward for up to 5 years.
Some taxpayers who have lost the value of some deductions (such as the state and local tax deduction) may make up the difference by contributing more to their favorite charity so they can continue itemizing.
You should seek advice from your tax professional when trying to determine how these changes will affect you.
If you have any further questions or would like to talk to us about your tax and/or accounting/bookkeeping situation, call us for free consultation at (240) 676 – 0188 or email us at info@triuneaccountinggroup.com. At Triune Accounting Group it is our business to focus on your business, so you can focus on your business.