Changes to the U.S. Tax Code that potentially can save you thousands of dollars were enacted last year as part of the Tax Cuts & Jobs Act. The changes include a new deduction available to you as an independent contractor or sole proprietor for reducing your tax liability by 20 percent. How to take this deduction and apply other changes in the law are discussed in a series of video tutorials released by NAR last month.
The tutorials are timely now that the year is winding down and final 2018 tax filings need to be submitted to the IRS.
The tutorials are organized into a dozen topics that affect your taxes, both as a real estate professional and as a homeowner or renter. I encourage you to familiarize yourself with the changes and to pass along this email to your colleagues.
1: An Introduction to the Tax Cuts and Jobs Act of 2017
- Introduction to the series (0:13)(link is external)
- 3 driving forces of tax act (2:33)(link is external)
- What each video covers (5:13)(link is external)
2: Major Changes Affecting Individuals
- Changes in tax rates (0:33)(link is external)
- Higher standard deduction (5:54)(link is external)
- Loss of personal exemptions (10:55)(link is external)
- Doubled child credit (13:03)(link is external)
3: Changes Affecting Tax Incentives of Owning a Home
- Changes to MID (2:15)(link is external)
- Limits on state, local tax deductions (6:37)(link is external)
- Curtailment of casualty deduction (10:04)(link is external)
- Curtailment of moving expense deduction (11:36)(link is external)
- Retention of capital gains exclusion on home sale proceeds (13:44)(link is external)
4: Tax Changes for the Real Estate Professional
- Elimination of business entertainment deduction (1:20)(link is external)
- Addition of 20% business income deduction (5:14)(link is external)