With the passing of Tax Cuts and Jobs Act of 2017 (TCJA), some deductions that have been available in the past are no longer available. One of these deductions is miscellaneous itemized deductions. Covered under this umbrella are investment advisor fees. Though unfortunate from a tax standpoint, it may still be the best way to have your advisor manage your investments. If you have taken advisor fees as part of your itemized deductions in the past, you may want to consider talking to your financial planner.
Other Miscellaneous Itemized Deductions
The other miscellaneous itemized deduction we see most often is unreimbursed business expenses, such as business mileage or items required to be used in a trade or business, but not paid for by the employer. If this change impacts your return, it may be a good idea to request your employer reimburse you for these expenses under an accountable reimbursement plan. This way, taxpayers get covered, tax-free, for the costs they pay out of pocket and the business gets to deduct the expense.
Regardless of the final guidance, the new tax laws will add to the complexity of preparing returns, which may also result in longer preparation times.
July 24, 2018
BEWARE OF IRS SCAMS
The IRS initiates most contact with taxpayers through regular mail delivered by the US Postal Service. In some very special circumstances, the IRS may show up at your door, but you will have received a letter in the mail prior to their visit, so their visit shouldn't be a surprise.
The IRS does NOT demand people use prepaid debit card, gift card, or wire transfer to make a payment. They will NEVER ask for debit or credit card numbers over the phone. Neither will the IRS threaten to bring in the local police, immigration officers, or other law enforcement agencies to arrest people for not paying. The IRS is not able to revoke a license or immigration status.
Remember to stay vigilant. Criminals continue to impersonate IRS employees & call taxpayers in aggressive and sophisticated ways. If you receive any such calls, just hang up the phone. Do not try to engage the caller.
July 20, 2018