{"id":7317,"date":"2019-03-04T06:29:01","date_gmt":"2019-03-04T14:29:01","guid":{"rendered":"http:\/\/evergreensmallbusiness.com\/?p=7317"},"modified":"2019-02-14T10:08:09","modified_gmt":"2019-02-14T18:08:09","slug":"lost-tax-deductions-in-new-tax-law","status":"publish","type":"post","link":"https:\/\/evergreensmallbusiness.com\/lost-tax-deductions-in-new-tax-law\/","title":{"rendered":"The Lost Tax Deductions Under New Law"},"content":{"rendered":"<p><a href=\"http:\/\/evergreensmallbusiness.com\/wp-content\/uploads\/2019\/02\/iStock-1013654802.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-8147\" src=\"http:\/\/evergreensmallbusiness.com\/wp-content\/uploads\/2019\/02\/iStock-1013654802-300x191.jpg\" alt=\"Picture for lost tax deductions blog post\" width=\"300\" height=\"191\" srcset=\"https:\/\/evergreensmallbusiness.com\/wp-content\/uploads\/2019\/02\/iStock-1013654802-300x191.jpg 300w, https:\/\/evergreensmallbusiness.com\/wp-content\/uploads\/2019\/02\/iStock-1013654802.jpg 740w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Over the last year, you\u2019ve surely read or heard that many long-standing deductions go away.<\/p>\n<p>In this short blog post, I\u2019m going to review these lost tax deductions.<\/p>\n<p>Knowing which deductions you no longer get to take should make preparing your tax return easier.<\/p>\n<h2>Personal Exemptions<\/h2>\n<p>In past, taxpayer potentially received a roughly $4,000 deduction for each person in the family. (High income taxpayers lost some or all of this by the way.)<\/p>\n<p>For 2018, the personal exemptions go way. No more. So count this as the first and one of the biggest lost tax deductions under the new law.<\/p>\n<h2>Moving Expenses<\/h2>\n<p>Like personal exemptions, moving expenses no longer count as deductions. Sorry.<\/p>\n<h2>Home Mortgage Interest<\/h2>\n<p>The new tax law limits the mortgage interest deduction for <em>new<\/em> mortgages. You only get to deduct the interest on the first $750,000 of your loan.<\/p>\n<p><strong>Note:<\/strong> Old larger mortgages probably get grandfathered, so interest on those loans probably can still be deducted. But you\u2019ll want to understand the gritty details. (See this blog post for more information:<a href=\"http:\/\/evergreensmallbusiness.com\/new-mortgage-interest-deduction-rules\/\">New Mortgage Interest Deduction Rules<\/a>.)<\/p>\n<h2>Home Equity Loan Interest<\/h2>\n<p>A related potential lost tax deduction? Unless a home equity loan counts as a mortgage (because you used the home equity loan money to buy, refinance or improve your home), the new tax law says you don\u2019t get to deduct interest on a home equity loan.<\/p>\n<h2>State and Local Income, Property and Sales Taxes<\/h2>\n<p>The new tax law limits the itemized deduction a taxpayer gets for state and local taxes to no more than $10,000.<\/p>\n<p>These state taxes include property taxes and then either state income taxes or state sales taxes.<\/p>\n<p>Anybody living in a state with income taxes or high property taxes\u2014probably the so-called blue states\u2014will very likely experience this lost tax deduction.<\/p>\n<h2>Casualty Losses Outside Presidential Declared Disasters<\/h2>\n<p>Casualty losses including theft losses no longer work as deductions\u2014except if the casualty loss occurs in a presidentially declared disaster area for something like a storm, fire or earthquake.<\/p>\n<p><strong>Note:<\/strong> The casualty loss math often makes a deduction problematic even if you can claim the deduction.\u00a0 You ignore the first $100 of any casualty loss. (That doesn\u2019t count.) And then you only get to deduct the remaining casualty loss or losses (the amounts leftover after the $100 write-off) to the extent they in total exceed 10% of your adjusted gross income.<\/p>\n<p>To simplify, if your adjusted gross income equals $100,000 and you experience one \u201cpresidentially declared\u201d casualty event, only the part of a casualty loss in excess of $10,100 becomes an itemized deduction.<\/p>\n<h2>Miscellaneous Itemized Deductions in Excess of 2% of Adjusted Gross Income<\/h2>\n<p>In the past, you got to take a handful of miscellaneous itemized deductions to the extent they together totaled and exceed 2% of your adjusted gross income: un-reimbursed employee expenses, tax preparation fees, investment expenses and so on.<\/p>\n<p>But no more. These deductions have also been eliminated.<\/p>\n<h2>Three Final Comments about Lost Tax Deductions<\/h2>\n<p>All the lost tax deductions sound bad, but you won\u2019t know whether you pay more tax until you look at the new tax law\u2019s other effects. For one thing, for the next few years at least, individuals calculate their income taxes using a schedule of lower tax rates.<\/p>\n<p>As another example, business owners get a series of compensating tax breaks that should more than make up for any lost itemized deductions. (The big new small business tax deduction is the <a href=\"http:\/\/evergreensmallbusiness.com\/pass-thru-income-deduction-dozen-things-every-business-owner-must-know\/\">Section 199A qualified business income deduction<\/a>. This deduction essentially says business owners don&#8217;t have to pay income taxes on the last 20 percent of the business income they earn.)<\/p>\n<p>Third, finally, probably many middle-class households won\u2019t actually be \u201churt\u201d by the lost tax deductions. Why? Many won\u2019t itemize any longer. Rather, they will take the new greatly enlarged standard deductions: $12,000 for a single taxpayer and $24,000 for a married couple.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the last year, you\u2019ve surely read or heard that many long-standing deductions go away. In this short blog post, I\u2019m going to review these lost tax deductions. Knowing which deductions you no longer get to take should make preparing your tax return easier. Personal Exemptions In past, taxpayer potentially received a roughly $4,000 deduction [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8147,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[34],"tags":[],"class_list":{"0":"post-7317","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-individual-income-taxes","8":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Lost Tax Deductions Under New Law - Evergreen Small Business<\/title>\n<meta name=\"description\" content=\"Most taxpayers won&#039;t initially suffer because of the lost tax deductions they suffer under the new tax law. 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