Tax reform has finally been passed by Congress and signed by the president. While I have not seen too many coherent details coming out through mainstream media (and the IRS has apparently been blindsided as they have not much to say yet), some of the key things seem to be:
I get to choose between taking a $12000 standard deduction or itemizing.
If I itemize I don't get to write off mortage interest AND property tax AND state income tax like I did before.
Tax rates are going down (for a few years at any rate)
Income from 'pass-
So assuming this is right, what will this mean for me?
Losing the ability to write off a bunch of stuff, I will probably have to settle for the standard deduction. This sucks and despite a lower marginal tax rate I thoroughly expect to get it up the ass from the IRS in April 2019. In reality,the IRS gets to take the blame as people don't seem to realize that they don't make the tax laws, they just enforce them -
Since I am unlikely to be itemizing, this is going to make charitable contributions more expensive. So fewer and smaller contributions. Tough luck starving orphans!
The changes to deduction rules seems to be targeted primarily at punishing people in the more liberal states which have both significant property and income taxes. For example, both Massachusetts and Oregon (flaming liberal) have high property and income taxes -