As a courtesy to Taxpayers, IRS provides an “early release draft” of an IRS tax form. The drafts are not to be used for filing, but are generally released when most changes have been incorporated into the Form. The highlights for 2017:
Taxpayers need to understand that the 2017 Tax Reform currently under consideration could potentially translate into a potential tax increases as it can involve a loss of exclusions and deduction credits. What we know so far is that the deduction for charitable donations is staying intact. For new mortgages, Taxpayers will only be able to deduct interest payments made on their first $500,000 worth of home loans. It appears that Taxpayers can still deduct interest payments made on their first $1 million worth of home loans in existence prior to passage of the proposed tax reform.
There are four (4) tax breaks that Taxpayers could potentially loose as they are still up in the air or in the chopping block. They are:
Although the “doubling” of the standard deduction is targeted to offset these potentially disappearing tax breaks, it is still unknown what will be the final impact to the Taxpayers. Will “doubling” the standard deduction turn out to be misleading? How the GOP will bankroll the tax reform?
Don’t be a victim of your own making. Taxpayers ought to consult with their tax specialists and get a jump start on 2017. They also should plan ahead in the eventuality that some of the proposed tax breaks disappear.