In this short video, Keith from Insight Tax outlines three major 2018 tax law changes that affect itemized deductions. First, miscellaneous itemized deductions such as unreimbursed employee expenses are no longer deductible. Second, the mortgage interest deduction cap is lowered from $1 million to $750 k, reducing the interest write‑off for mortgages above the new threshold. Third, interest on home‑equity lines of credit (HELOCs) is no longer deductible, eliminating the previous $100 k limit. Keith concludes by noting the lack of good news but offers Insight Tax’s services to devise strategies that minimize tax liability, inviting viewers to call for assistance.
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Hey everyone, this is Keith here at Insight Tax, and we just wanted to make a quick video talking about some of the tax law changes that are going to have a big impact on your taxes in 2018. The main thing I want to talk about is itemized deductions. Now, every taxpayer can either deduct the standard deduction or the itemized deductions. The first itemized deduction I want to talk about is miscellaneous itemized deductions. By miscellaneous itemized deductions, I mean things like unreimbursed employee expenses, And unreimbursed employee expenses are things like equipment or materials that, that you buy for your work and where the company doesn't reimburse you for that. So before the tax law change, you were able to deduct that fully without a problem. After the tax law change, we're actually not able to deduct that on your taxes anymore, unfortunately. The next one I want to talk about is mortgage interest deduction. Prior to the tax law change, you could deduct the interest portion of your mortgage payment on a mortgage up to $1 million. After the tax law change, that limit has been reduced to $750,000. So, if you have a mortgage between $750,000 and $1 million, your tax write-off is going to be a lot less for the interest portion. If you have a mortgage below $750,000, then you don't have to worry about this change at all. The other change I want to talk about is with HELOCs, or home equity line of credits. With the home equity line of credit, before the tax law change, you could deduct the interest portion of those payments on a balance up to $100,000. After the tax law change, you aren't able to deduct any anymore, unfortunately. So with all these changes, there isn't much good news, but here at Insight Tax, we have some really good tax strategies and plans to help you get the best tax outcome possible. So give us a call if you have any questions. And if you want some help with your taxes, thanks.
