This Year Will Be the Last Time You Can Claim These Deductions

This Year Will Be the Last Time You Can Claim These Deductions

If you’re like many taxpayers, then you’ve already filed your 2017 tax return, and perhaps even received your refund. If so, congratulations are in order. You can now forget about taxes for another year…although we don’t recommend that. On the other hand, if you’re one of the many procrastinators out there that just can’t find the motivation to get your taxes done, then you should probably read this before you finally get around to doing them.

Last Chance Deductions

Perhaps you’ve heard about some changes to the nation’s tax code? It was kind of a big deal. However, these changes don’t apply to the 2017 tax year. You’ll have to worry about them come 2019. That being said, because of the changes there are some things that will be a lot different next year. For example you won’t be able to enjoy all of the same deductions that you always have. In fact, here are five common deductions that won’t be back next year. That means you better make sure you claim them this year, because they will soon be a thing of the past.

Personal Exemptions–this is the last year you can claim a personal exemption of $4050 for you, your spouse and each of your dependents. The standard deduction has increased, but that won’t benefit everyone that would have claimed the personal exemption, including some families with multiple children, or single parent homes.

Mortgage Interest Deductions–although most people will still be able to claim this deduction, there are significant changes that affect high price mortgages. If you purchased your home before December 15 of last year you can claim the mortgage interest on loans up to $1 million. For new mortgages after that, the cap has been reduced to $750,000.

State and Local Tax Deductions–This is the last year you can deduct state income, property and sales taxes from your federal return. The Tax Cuts and Jobs Act now combines the three and caps the combined amount for all three at $10,000.

Moving Expenses–anyone who had to move for work and incurred tangible moving expenses might be able to deduct those expenses. First off, your move must be because of work and it has to be more than 50 miles away from where you previously lived. So, if you moved last year, you’re in luck.  But going forward, at least until 2026, this deduction will no longer be available.

Alimony Payments–if you paid alimony payments to your ex in 2017 you can still deduct them. Starting in 2018 that won’t be the case. What’s more, the person who receives the payments will no longer have to report them as income. The one caveat: this only applies to new divorces that occur in 2019 or later.

Just Do It

So, if you still have to file your return this year, make sure you don’t miss out on any of these deductions. This might just be your last chance.

We hope you found this article about “This Year Will Be the Last Time You Can Claim These Deductions” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

GROCO.com is a proud sponsor of The American Dreams Show.

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

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In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

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