So one negative I found with the next tax cut bill

[steppinthrax]

I am 52 and drive an hour to Hollywood Everyday.

Being the fact that you have 4 children from 4 different woman all you never married and paid CP to all of them..

I wouldn't be surprised if you drove to Hollywood, CA everyday...

 

[Chris0nllyn]

Is company reimbursement for commuting expenses common?

Commuting too work is not deductable. Commuting in your personal vehicle for work is deductable and the company typically pays IRS mileage rates back to the employee.

My company does that, but offers incentives for ride sharing, biking to work, riding the bus. I believe this is what the OP was talking about...an incentive, not deduction.

 

[Chris0nllyn]

Well for the past 2 years I've had over 25K in itemized deductions. I suspect 2018 I will have much more. I also have an LLC and passive income (rental), which I believe are taxes the same (need to find out). If not I need to think about putting the rental into a separate LLC, but I need to work out how much the personal property taxes will be in Maryland or if I will pay Baltimore's personal property tax for real estate in Maryland even though I live in Calvert. Calvert has one of the lowest personal property taxes (business) in the state (as my accountant says).

Anyway those minor things may have little difference to the lower taxes I may pay next year. I'm on the higher end of the bracket (at least definitely will be next year). But this is the important thing here, we are making assumption that there will be an increase in growth, if not then this tax cut will serious #### things up...

You may want to look at starting a S-Corp or other similar pass through business, if possible. The rate for those are around 20% now and lowers than your individual tax rate (most likely, I don't know your situation). I imagine a ton of people will use them as a way to pay less in taxes (who wouldn't?).

 

[Gilligan]

You may want to look at starting a S-Corp or other similar pass through business, if possible. The rate for those are around 20% now and lowers than your individual tax rate (most likely, I don't know your situation). I imagine a ton of people will use them as a way to pay less in taxes (who wouldn't?).

Tax situation is same for LLC as S corp as far as passing income through. I own or have owned some of both.

 

[Gilligan]

Commuting too work is not deductable. Commuting in your personal vehicle for work is deductable and the company typically pays IRS mileage rates back to the employee.

My company does that, but offers incentives for ride sharing, biking to work, riding the bus. I believe this is what the OP was talking about...an incentive, not deduction.

I mentioned the reimbursement for business use of POV in earlier post.

 

[steppinthrax]

Tax situation is same for LLC as S corp as far as passing income through. I own or have owned some of both.

Both I believe are pass-thru.

 

[Gilligan]

v

Both I believe are pass-thru.

Exactly. As it is for sole proprietorships and partnerships too. So now that income is being treated differently under the new legislation. I don't know yet if I'll see it show up in my wallet in a good way.

 

[steppinthrax]

v

Exactly. As it is for sole proprietorships and partnerships too. So now that income is being treated differently under the new legislation. I don't know yet if I'll see it show up in my wallet in a good way.

Well the other thing is the personal exemption is eliminated, not sure if this affects me. I file jointly with my wife.

 

[Gilligan]

Well the other thing is the personal exemption is eliminated, not sure if this affects me. I file jointly with my wife.

Unless you have some kids, you'll benefit more from the doubling of the standard deduction than you'll lose from the elimination of the personal exemption.

 

[steppinthrax]

Unless you have some kids, you'll benefit more from the doubling of the standard deduction than you'll lose from the elimination of the personal exemption.

I have 2 kids

 

[Gilligan]

I have 2 kids

Might end up a wash for you then. Hope you do see some benefit. I saw somewhere an example of a family with three kids and they actually ended up paying slightly more tax in the example.

 

[awpitt]

Might end up a wash for you then. Hope you do see some benefit. I saw somewhere an example of a family with three kids and they actually ended up paying slightly more tax in the example.

For my 2016 return, I had $12,300 in itemized deductions plus $8,100 for two personal exemptions ( me and my 19 year old) for a total deduction of $20,400 in deductions. Under the new plan my standard deduction will be $18,300 (head of household) so I will end up loosing $2,100 in deductions. I'm hoping the lower tax bracket rates will make up for that plus there's some sort of adult dependent (the 19 yo) tax credit that's been added.