A friend of mine recently sold personal items (such as jewelry). Will she be she taxed on these items as income? Is there a dollar amount under which she can avoid being taxed?
According to the IRS, if you sell a personal item for more than the original cost of the item, then it should be considered a capital gain on which you pay capital gains taxes. However, only the gain is taxable, so if the items were sold for less than their original cost, then it would […]
What happens to the $4,050 personal exemption in the new tax law?
Starting in 2018, the personal exemption will go away and will be replaced by a larger standard deduction. While this amount will still be larger than the old Standard Deduction + Personal Exemption, you are correct that it will be somewhat muted if you are comparing the old vs. new standard deduction.
Does the tax plan do away with the 3.8% Obamacare real estate capital gains tax?
Under the new tax plan there will be no change to the 3.8% Obamacare surtax on investment income.
Regarding the tax plan, are the changes going to affect us when we file our 2017 taxes?
When passed, the bulk of the changes in the new tax law will go into effect in 2018, so they will not be retroactive back to your 2017 taxes.
Is there an additional standard deduction amount for over 65 age? Is the qualified charitable donation (QCD) from IRA’s still available?
The new tax plan leaves intact the additional $1,300 deduction for each filer 65 and over. It is also our understanding that the new tax plan will not make any changes to QCDs from IRAs.
Are medical expense deductions being eliminated under the new tax plan for 2018? Should I incur the expense this year?
For 2017 and 2018, the new tax law will allow you to deduct qualified medical expenses that exceed 7.5% of your Adjusted Gross Income. This was scheduled to rise to 10% of AGI under the current law so it will work to the advantage of taxpayers.