Throughout the year, our office assists clients with the preparation of individual income tax, estate, trust and gift tax returns. In addition, we counsel clients in understanding the tax consequences of their estate planning, real estate transactions and business decisions.
Tax Planning & Preparation
Tax Planning & Preparation – Questions/Answers
- 1: What are some of the significant changes to the individual income tax made by the Tax Cuts and Jobs Act of 2017?
The standard deduction has almost doubled from the 2017 amounts:
2017 2018 Single $6,350 $12,000 Married filing jointly $12,700 $24,000 Married filing separately $6,350 $12,000 Head of Household $9,350 $18,000 However, the personal exemption goes away for 2018. That amount was $4,050 per person in 2017.
- 2: Is home equity debt still deductible on Schedule A in 2018?
No. However, if you borrow on what the lender considers a home equity loan and you use the proceeds to pay for capital improvements to substantially improve your home, that is considered acquisition debt and the interest is fully deductible on Schedule A up to the statutory limits.
- 3: What form do I file to request an extension for filing my Form 1040?
By filing Form 4868 by the regular tax filing deadline, you will receive an automatic
6-month extension on filing your return. At the time you file the Form 4868, you may make a payment of the tax you estimate you will owe when you do file your return. Keep in mind that if you do not pay the amount of tax you owe with the Form 4868, you will owe interest and possibly penalties on the late payment.
Contact Daniel P. Randolph, Esq. at drandolph@ritter-randolph.com or Mary Ann Jacobs, Esq. at majacobs@ritter-randolph.com for assistance with your tax planning and preparation. To schedule an appointment to have your income taxes prepared, contact Beth Merritt at bmerritt@ritter-randolph.com.