Page 5 - Tax_Law.pdf
P. 5
But say goodbye to the tax And the reimbursement for bicycle
deduction for alimony payments. commuters.
Alimony payments, which are codified in The tax code used to let you to knock off
divorce agreements and go to the ex- up to $20 from your income per month for
spouse who earns less money, are no the costs of bicycle commuting to work,
longer deductible for the person who assuming you weren't enrolled in a
writes the checks. This provision will apply commuter benefit program. That's gone.
to couples who sign divorce or separation
paperwork after December 31, 2018. Almost everyone is now exempt from
the estate tax.
The deduction for moving expenses Before tax reform, few estates were
is also gone. subject to the estate tax, which applies to
There may be some exceptions for the transfer of property after someone
members of the military. But most people dies. Now, even fewer people have to deal
will no longer be able to deduct the cost of with it. The amount of money exempt from
their U-Haul when they move for work. the tax -- previously set at $5.49 million for
individuals, and at $10.98 million for
As is the tax preparation deduction. married couples -- has been doubled.
Before tax reform passed, people could
deduct the cost of having their taxes
prepared by a professional, or the money
they spent on tax prep software. That
break has been eliminated.
The disaster deduction.
Losses sustained due to a fire, storm,
shipwreck or theft that aren't covered by
insurance used to be deductible,
assuming they exceeded 10% of adjusted
gross income. But now through 2025,
people can only claim that deduction if Adjustments for inflation will be
they've been affected by an official slower.
national disaster. That would make The new legislation uses "chained CPI" to
someone whose house was destroyed by measure inflation. It's a slower measure
a California wildfire potentially eligible for than what was used before. Over time,
some relief, while disqualifying the victim that will raise more money for the federal
of a random house fire.
government, but deductions, credits and
exemptions will be worth less.
P.G. Better Living
