PROGRAM: What the new Tax Law means to us.
Mark Rehm and Cathy Taylor
Two of our CPA members teamed up to tell us about the changes we will see when we file our 2018 income taxes in 2019.
For personal Federal Taxes:
- Standard deduction is increased substantially, which will cause most tax payers to not itemize their deductions. This is expected to impact charities.
- Itemized deductions:
- Medical: over7.5%
- Deductions for property taxes and other state and local taxes limited to $10,000.
- Fee deductions for many other expenses are eliminated, notably especially job expenses, tax preparation expense, etc.
- Home equity loan interest is no longer deductible; mortgage interest reduced from $1 million mortgages to $750K for new mortgages.
- Alternative minimum tax is gone
- Alimony paid is not deductible; income for the recipient is not reportable
- Moving expenses are not deductible; employer paid moving expenses will be income on W-2
- Affordable Care Act: mandated penalty goes away in 2019
The impact on individual Colorado Taxes. Cuts in federal deductions will lead to higher taxable income at the State level; the Colorado Legislature talking about whether to let this happen or make adjustments to make the changes tax neutral. Best guess: Colorado will let the extra income tax happen.
Federal Business deduction:
- 20% for qualified business income: no definition about “qualified” yet. This includes schedule C, S-corps and partnerships. Limited by income (Single $157,500; Married Filing Jointly $315,000).
- For businesses, entertainment is no longer deductible; corporate tax rate is reduced from 35% to 21%; Also, no 1031 exchange for personal property. No charitable deduction for college donations.
Guests: Jen Clark, Conifer High School PTA
Announcements/Business:
- The CHS PTA Mind Blown Trivia Night, February 10, 6:30-10pm at Our Lady of the Pines. Funds raised are for Technology in the Classrooms. Tables of 8 available at $15/seat. Bring your own appetizers. Beverages available. Tickets available on-line: https://coniferhighschoolptsa.thundertix.com/; for more info contact them at CHSTriviaNight@gmail.com.
- Two checks were received for Back Pack Project, one from Jefferson Unitarian Church and one from Sharon Kyle (Mesa, AZ)! Muchas Gracias!!
- Mountain Foothills Rotary, Crutches for Africa, Chili Cook Off, Saturday February 10, 12-3pm. Tickets are $10 ($20 at the door). Enter your chili for $25 prior to event. Tickets available at http://www.crutches4africa.org.
- The Conifer Interact Club Sasa Harambee fundraiser dinner is Saturday, January 27, 7-10pm at Our Lady of the Pines. Tickets are available on their website, click HERE.
- Wes and the CHS Interactors met last weekend with Carol Carper and Joseph to discuss plans for their trip to Kenya.
- Board of Directors meeting next Monday, January 22, 6pm at The Well at Bradford Junction. Board members, please send your reports to President Finn.