Re: [vpFREE] Possible tax changes

 

I believe they kept the senior deductions.

From: vpFREE@yahoogroups.com <vpFREE@yahoogroups.com> on behalf of Howard Stern pyiddy@att.net [vpFREE] <vpFREE@yahoogroups.com>
Sent: Sunday, December 24, 2017 5:53:27 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Possible tax changes
 
 

That is true. good catch.


On Sunday, December 24, 2017 3:54 PM, "C clementiyn@yahoo.com [vpFREE]" <vpFREE@yahoogroups.com> wrote:


 
Child tax credit doubled from $1000 to $2000 per child. Credits are substantially better than deductions.

On Dec 24, 2017, at 6:31 AM, Howard Stern pyiddy@att.net [vpFREE] <vpFREE@yahoogroups.com> wrote:

 
Also be aware that the elimination of the personal exemption hurts! If you are a senior, I think the second exemption is lost too.
Also no exemption for the kids? If so non itemizers with three kids for a married couple is barely better than a push under the new law.
Any more kids is a loser!


On Sunday, December 24, 2017 6:58 AM, "Hing Tan mikeam7788@yahoo.com [vpFREE]" <vpFREE@yahoogroups.com> wrote:


 
Good information. Excellent example.

Do you know the mortgage interest is deductible under the new tax law?

Thanks 


Sent from Yahoo Mail for iPad

On Saturday, December 23, 2017, 7:38 PM, harry.porter@verizon.net [vpFREE] <vpFREE@yahoogroups.com> wrote:
 


For the sake of a concrete example, here are my circumstances (filing jointly):

2017 itemized deductions were $25000.  Taxes paid to state and local authorities (referred to as SALT - state and local taxes) were $15000.

Under the 2018 SALT cap of $10000, I'll lose the benefit of $5000 in tax deductions.  My allowable itemized deductions are reduced to $20000.  In absence of gaming activity, I would take the standard deduction of $24000, gaining $4000 in deductions.

Now, let's add some modest gaming activity and presume that during the year $12k in w-g jackpots were hit, that these wins are reported as gross winnings, and that overall gaming activity netted a loss (so a offsetting gaming loss deduction of $12k is taken).

Here's where things get a bit ugly.  Yes. gaming losses can be declared to the extent of going wins, thus a wash in this case.  However, to the extent that total itemized deductions are increased to the $24000 standard deduction through declared gaming losses, the benefit of otherwise taking the standard deduction is reduced $ for $.

In the above example, the added $4000 deduction benefit (via the standard deduction) is lost with the first $4000 in gambling losses.  Assuming a 35% marginal tax rate, gambling activities impose an effective tax penalty of $1400.



---In vpFREE@yahoogroups.com, <onetime7500@...> wrote :

Since gambling losses are not subject to the 2% AGI floor, they are still allowed under the new law.

The problem for many folks will be the much higher $24,000 standard deduction if married, $12,000 if single. If you need to deduct losses, you will miss out on this higher standard deduction. Given that state and local taxes are limited to $10,000, this is likely to be a hidden tax on gambling for many people.




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