Itemized deductions overall are not being eliminated (such as mortgage interest, medical expenses, charity), only certain itemized deductions are being capped (State income taxes) or eliminated (misc. 2% deductions). Also, under the new law due to the enhanced standard deduction, many taxpayers will find it more beneficial to claim the standard deduction rather than itemize their deductions.
The new tax federal reform bill the House passed this morning eliminates certain itemized deductions and may limit others in 2018 and beyond. Take advantage of your itemized deductions and make your donations NOW!
The Billings Chamber of Commerce hosted a very informative meeting Wednesday, Dec. 20, 2017, about the new tax reform bill passed by the House the same day. CPAs Mac Stevens and Ron Yates from Eide Bailly presented, and stressed the potential federal income tax benefit of donating to charity before the end of this year.
“Due to reduced income tax rates for many taxpayers, deductions are worth more [to the donor] today than they will be 12 days from now,” reported Yates during his presentation. He also mentioned that people should talk to their advisors and, if beneficial, consider making their 2018 charitable donation now, before these new tax law changes take effect.
Their report went on to say, “Many taxpayers will claim the enhanced standard deduction going forward and may not likely itemize on Schedule A without miscellaneous 2% itemized deductions and with new potential limitations on the state income tax deduction. Such taxpayers should consider accelerating 2018 charitable deductions to 2017 if they plan to itemize their federal taxes in 2017.”
Liz Moore from Montana Nonprofit Association confirmed that “if an individual wants a deduction this year they should double down on it.”
Next year, they may not be able to make the deduction. In other words, use it while it still works!
Billings TrailNet is launching a major capital campaign for the Skyline Trail and need your donations to make this trail a reality. Please contact us at Billings TrailNet for more information or to donate. You can reach us via email at firstname.lastname@example.org, or by calling 406-281-1244.