Some Tax Laws Are Still the Same

As part of the current tax law changes congress moved to leave in effect certain tax provisions. Here is a brief list of some of these.

·      The optional deduction for state and local sales taxes in lieu of deducting state income taxes.

·       The above the line deduction for up to $4,000 in qualified tuition and related expenses.

·       The deduction of home mortgage insurance premiums.

·       The exclusion in income of up to $2 million dollars in the cancellation of mortgage debt for a primary residence.

·         15 Year depreciation for leasehold improvements.

·         50% Bonus Depreciation on purchase of new assets.

·      An increase to $500K in Section 179 first year expensing option for the purchase of new or used business equipment, with an investment limit of $2 million.

It’s important to plan ahead but these could prove to be useful for some taxpayers.