Aww... your comment was the first thing I read today before I started working and you made my day! Thanks man! Really appreciate it!

Thanks so much Jay! That means a lot!

Thank you for subscribing! Please reach out if I will ever be of service. 435-586-9366 ext 2024.

IRS Pub 936...really...do a video.

Thanks Brian!

Edwin, yes...and I'm sorry for the late reply. You are right on. Since shooting this video there has been IRS notices stating that HELOC interest DIRECTLY related to acquisition or improvement of the property is still tax deductible (but still subject to the total mortgage balance limit).

Yeah....I'm not going to save anything on my personal return and probably owe more. Hopefully save something on my business return. At least the economy is booming and that's worth something.

it pushes people to become business owners ie., job creators

@@iamOAKland You aren't wrong. I went from working a corporate job to becoming an independent consultant - and I work for my old company. I make a bit more money (not huge), but the writeoffs I have as a businessowner means that my take home income greatly exceeds what I was doing working for them. Oh - and I can stack contracts too!

@@MarkJKohler That may be, but booming economies are temporary. Taxes are essentially forever.

As usual

Edmund. I love it. It totally agree. I wish more people investigated and researched the possibilities of using government designed plans to help them make it through retirement. Social Security is just not enough for millions of people. Taking advantage of IRAs, 401ks, Roth accounts, HSAs, and anything to save on taxes ethically and honestly is CRITICAL to survive. I'm with you Edmund. I encourage any of you reading this to study, learn and do your research. Wall street products are NOT the only answer and the government has designed vehicles for you to invest it what you know best! mjk

C M same here!

It really is terrible. I'm getting far less in itemized deductions too. There certainly are winners and losers under the new TCJA.

Same here --broke even for 2017 returns but now we have to pay $1,700 for 2018. What happened? With married joint we made $75,000 --that payment is a big chunk out of our income.

@@TheAnubis57 I feel like something changed with the taxes withheld, I was fine 2017 and then 2018 even with 0 exeptions, my husband and I owed couple hundred dollars in taxes... we both get the maximum withheld... nothing else changed, we always take the standard deduction, can't afford a house where we live.

so you right off over the new 24 K (vs. older 12K) in deductions. good for you. it wasnt/isn't for everyone but for the vast majority I'm thinking of middle class NOT living in High income/property/house value areas or Casualty" areas. huh.

You're welcome! Thanks for watching!

Ford ST Thank you

I edited my comment and I hope you Ford ST get this message. Please keep in mind that what you have withheld from your paycheck is irrelevant. That just is an estimate for what you may owe in April. The real issue is, what are your total taxes. Now if you got a refund, you may indeed be paying less tax (congrats and enjoy- seriously), but what you had withheld is different that what you have to ultimately pay in total. Maybe i missunderstood your comment, but just thought I would throw it out. Thanks

Ford ST, many many people are paying more in taxes thanks to Trump's 'tax cuts', especially home owners in higher tax states. The Trump tax cuts were explicitly targeted at Californians and New Yorkers where high property values result in high taxes, and the SALT limit drastically hurt them. As for your $5,000 refund, that just means you're bad at tax planning and give the federal government an interest free loan.

@@2011blueman I fully understand all of this. Is it fair for people to pay less federal income tax just because their state taxes them to death I don't think it is. State property tax does not support the military or any federal program. I like to have a nice refund that's the only time me and my Wife ever spend money on ourselves. Yes we could have bigger paychecks instead but we already save plenty for retirement. It works for us and that's what we choose to do we are well off financially.

@@autohelix Except you've inverted the question. The question is whether it's fair for people to pay more federal income tax just because their state taxes them more. The Trump tax "cut" (really only a cut for the wealthy and corporations) penalizes people in higher tax states, not the other way around.

You are very welcome!

I'll check it out.

The 23% is a tax _inclusive_ rate. It's misleading. It's not the same thing as a 23% sales tax. It's the same thing as a 30% sales tax. Tax inclusive means "for every $100 spent, $23 *_of that_* is tax". Sales tax is exclusive - meaning in addition to. It means "for every $100 spent, there is an *_additional_* x amount of tax added". That how sales tax works. You are trying to say that there is $23 of tax for every $100 spent. In reality, it's $23 of tax for every $77 spent. The total is $100, $23 of which is tax. This is equivalent to a 30% sales tax. And this is just for year one. This rate will increase every year. You would however get a "prebate" check every month depending on the size of your family. There is an annual consumption allowance - meaning, you aren't taxed on the first 'x' dollars spent. The latest figures are $11,770 per adult and $4,160 per child. In other words, if you are single adult, you have a consumption allowance of $11,770 - meaning, you aren't taxed on that amount, so they "reimburse" you for the tax you paid on that $11,770 throughout the year - or so they say. They are either bad at math; or they are blatantly lying - deliberately and it should be called out for the twisted and evil ploy that it is. The prebate amount is ACTUALLY 23% of the consumption allowance. They tell you they are reimbursing you for the tax you paid, but they aren't really. Let's say you are a single adult and you spent $11,770 on goods and paid the 30% tax on this. You would have paid $3,531 in tax on this. The ironically-named "fair" tax act says that they are going to reimburse you for this, but what REALLY happens? They reimburse you 23% of that money spent, or $2,707. Essentially keeping $824 of your money they claim they will reimburse you. It's deceptive and evil. This ironically named "fair" tax act uses an *_inclusive_* figure for the purposes of collecting the tax - which essentially equals a 30% tax, and then uses an *_exclusive_* figure when it comes time to reimburse people for an amount they say they are giving you for free - when they clearly aren't. This isn't a mistake someone is making. This is a deliberate attempt to mislead and deceive people. There is no reason to mix and match inclusive rates and exclusive rates in the same policy unless your intent is to deceive and mislead. And then they have the audacity to call it "fair".

Thanks for watching :)

Hi, due to my busy schedule I recommend you contact my office at 435-865-5866. Sorry for the inconvenience.

I would definitely recommend speaking to someone that can help with your tax and legal questions! Call my Law firm KKOS Lawyers at 888-801-0010. They can help with your important questions.

I hope it is a great tax season for you!

Thank you Lucy for watching my videos and supporting my channel!! Please don't hesitate to reach out if I'd ever be of service mark@markjkohler.com

You're very welcome! Don't hesitate to reach out to me if you ever need anything, either tax or legal stuff. mjk

Thanks so much for watching!

Lol. Thanks!! I'm trying. Please share and thank YOU for following. :)

Thank you Marc!

Glad it helped! Please subscribe and share!!

I'm so sorry to hear that! I have an amazing team of CPAs at my Kohler & Eyre CPAs Firm. Please reach out if you every need help with filing for taxes. 435-865-5866.

The standard deduction is $12000 what is this personal exemption you speak of you no longer get a personal exemption on your federal taxes?

hmmmm. California or higher income/property tax, home value type place huh....too bad. lol. Luckily MOST Americans/middle, upper middle class, dont' fall into this category. I know....California and the more important "coastal" states are more important and the Deplorable states....ah, most it seems....suck. And Democrats are all about the poor or less fortunate....Funny stuff.

Thank you! I appreciate the support!

Glad it was helpful!

HH is 18k

That's good. It really starts to hurt the upper middle class when State Tax and Property Tax and a big beautiful home start to far exceed $24,000. But nonetheless, I wish you the best in your effort to make and build as much wealth as you can. Thanks for following and the comment.

Absolutely. I couldn't believe it last year. so much easier and I guess less risk of being audited which I heard is kind of a pain. We are so simple I didn't worry. Anyway...so much easier. We were little higher than In between the old Standard deductions and the new. So much easier/cleaner. I'm guessing most are in this boat....not like California which he mentioned kind of loudly. go figure.

@@MarkJKohler the Upper Middle class that your talking about....ya, like those in California and such places....but not the Majority of places for the Majority of middle class/upper class people throughout the country/states. it will never be fair but it appears to be the Best for the Most....which is how it should be. Wife and I are upper middle class in Michigan along with many other Nurses/PTs/medical professionals.......Ya, easier to do taxes now, with being a in between the old SD and the new...a huge plus. So focusing on the mass benefit to the masses is probably a good thing

No, thank you for watching!

I don't understand what you are saying.

Fair point. I'm sorry. I think I referenced IRS Publication 502 (that includes all the deductible medical expenses), which also includes medical insurance. And yes, it would be included. I will say however that the area I focus on is helping small business owners and so I automatically think of writing off the medical insurance on the front page of the 1040, which is FAR BETTER than itemizing. We TRY to make sure that none of our clients are writing off Medical under Schedule A as an itemized deduction. We utilize the HRA and HSA also as much as possible. Check out this article of mine on the topic: markjkohler.com/health-care-strategies-and-update-in-health-care-strategies-and-update-in-2013-2/

Also, if you get your medical insurance through your employer, the employer paid premium is a tax free fringe benefit, and the employee paid premium is removed from the W-2 and thus not taxable. So with a small business or as an employee, most people have no need to include on Schedule A. Retirees would generally put it on sch A.

Good to hear! Thanks for watching!

Thank you so much!

You're welcome. Thanks for watching!

Excellent Celia. We handle the gambling expenses up to income through the Schedule C. The Schedule A is so jacked up now one has to get a little creative. Not trying to cheat or get away with anything, but you make a great point with gambling expenses and income.

You can only deduct medical insuance premiums....even the portion deducted from the paychecks and therefore paid by the employee...if those deductions were after taxes were paid. Most employee paid medical insuance premiums are deducted pretax, and are therefore already not included in taxable income, so you couldnt deduct them twice obviously. This is generally better because these deductions are not reduced by the 7.5% AGI limitation. So, I would advise anyone to pay careful attention to how any employee paid premium deductions are handled before deducting them on schedule A.

@@willoughbykrenzteinburg When I worked, my insurance was pretax, but now retired they are post taxed.

@@celiagorleski2716 yeah, absolutely deductible then...of course to the extent that they-along with other medical expenses-exceed 7.5% of AGI (as you are aware).

I should first say...Oh no! and I'm so sorry. Hopefully this and other of my videos in the future will help. If you ever need help, contact my Kohler & Eyre CPAs firm 435-865-5866. Thanks

Me too!!!

oh, your in California or the Upper Class areas with Property Tax issues, or you donate Huge amounts?....and not like the Majority of Americans that are probably benefiting from the Doubled standard deduction and the double child tax credit....if not just to make taxes easier by Not itemizing everything now. Can't benefit all people but benefiting the Majority, which I believe it probably does...but could be wrong, is probably the better way to go.

Great question. Generally, it's still a great wealth building AND tax strategy to buy home. But it depends on where you live. In many urban areas it's much more affordable to rent and invest your money elsewhere. It's tricky. I have a chapter on this in my new book: The Business Owners Guide to Financial Freedom: markjkohler.com/products/financial-freedom/

Itemizing is no more for healthy and average person. 5:10 is where you find the hurt

BlackSilhouette it’s like another way of saying subtract or adjust. Like in car insurance, you pay a deductible which is a partial fee apart from the cost of an accident claim.

Thanks so much!

Orator...hmm I don't hear that word a lot haha. Thank you so much!

Google it

Sorry there was a recent IRS regulation clarifying the interest on a HELOC is deductible IF for direct improvements to your primary residence.

Thats interesting. Remember, the mortgage interest limits are only on your personal residence. If you had a rental property that is completely outside of the standard-versus-itemized topic. I obviously haven't seen your return, but if you have rental property, you should ask your tax preparer how those expenses are being handled.

There is nothing in the new tax law that would affect either of the things you mentioned.

I agree with Willoughby if those items are related to your rental property.

@@MarkJKohler I was even considering the limitation of interest on schedule A. The repairs he says are specifically for a rental which as you pointed out wouldnt be affected. The interest wouldnt be limited if it is a rental, and I would surmise it wouldnt be limited even if this was on the residence. I cant imagine the interest on debt of $750,000 or more would be as low as $12,000 which is the only scenario where it would be limited. Unless the filing status married and separate where the limit drops to $375,000 of debt, but $12,000 still seems too low for that amount of debt. As far as the repairs, they obviously could have been capitalized depending on what elections were made, but to see no effect on taxes either way seems very strange to me.

If adding on more rental expenses didn't make a difference, it's likely because you make too little (and owe no tax before or after adding the expenses) or you make more than a certain threshold under section 469, which is 150K for married filing jointly (and phaseoit between 100-150k). If you make less then the threshold, you can deduct up to 25k of rental losses. Maybe you've already deducted 25k when you added in the repairs? I would consult your tax advisor as there are ways around the 469 rules depending on your fact pattern. And remember, if you can't deduct rental losses, they carry forward indefinitely and offset passive income (such as rental) or offset the gain (or reduce loss) when you sell the rental.

Haha that's one way to say it...

Yep!!

Great comment. You're right and I apologize. Your comment actually has prompted me to be more accurate and sensitive on this point. I was writing an article yesterday and specifically made note of the HH dollar amount. Thank you. I appreciate the suggestion.

wondered about that. Man...the stress should be on the key points that Benefit the majority of Americans I'm guessing. he kind of stressed the SALT and Casualty thing....and even mention California and their wealthier people/houses and property taxes. Interesting. Good vid but not great of course. perhaps catering to him and his people (lol...come on, no offense) I'm thinking. maybe not...maybe just his opposition views in politics/governement

Unless it can be included in a business write off I don't think so, sorry.

No, but the child tax credit sort of covers that to some extent. Don't forget about that. It's basically a discount directly off the taxes owed - and it would be worth $2,000 for one child. It is also refundable (up to $1,400).

Itemized deductions saved me thousands in taxes. Because of that orange sh!t stain I now owe. Yes, I blame him.

@@SalaciousCrmb are u blaming Trump

Donald Raya It was his legislation. Who should I blame, Obama? HRC? Flat Earthers?

@@SalaciousCrmb Now that I am doing taxes ,I can say that dishonest people who pay in $1200 and get $9000 I blame them

@@SalaciousCrmb I think your argument is very shallow so let's end it

Hi, due to my busy schedule I recommend you contact my office at 435-865-5866. Sorry for the inconvenience.

93263 Rami I believe you are still able to deduct mortgage interest & property taxes filed on schedule E for rental properties. This video is regarding the standard vs. itemized deductions on the 1040. Speak with a tax professional in you area; they’ll be able to help you understand what you may deduct.

Do you know why? Do you pay state income taxes? Do you have high property taxes? Do you itemize? If there was more information, I could identify the cause

You did not itemize. $18,000 was the standard deduction for head of household in 2018.

@@willoughbykrenzteinburg thank you

I'm sorry about that. It's tough to define everything and hit all the issues in a short KZfaq video. I blog in a more in depth manner on topics regularly, have books, and also a Tax and Legal Library with 60+ videos with 25+ hours of content. Check out my site www.markjkohler.com for some of that info. Thanks for your patience. Hard topic with SO many moving parts.

Thanks Govind!

Glad you think so!

I'd say your best bet is to watch some more videos on this topic, and/or visit my website at markjkohler.com/blog/ and find some articles I have written for this! If it is still unclear, give my assistant Rosalie a call at 435-586-9366 ext 2024 and she will point you in the right direction!

Oh my gosh... please reach out to my Kohler & Eyre CPAs team. They can work with you personally on this and help you save in taxes. Trust me. 435-865-5866 If you want to work with me directly on tax planning and strategies, please contact my assistant to get scheduled 435-586-9366 ext 2024. Thanks!

You can deduct mortgage interest on a second home provided you do not rent it out. Of course, if you rent it out, you can deduct mortgage interest as a rental expense. There is also a limit on the amount of mortgage interest you can deduct. You can only deduct it on COMBINED debt up to $750,000 ($1 million if you are grandfathered in). This limit only applies to the schedule A deduction. If you are deducting mortgage interest as a rental expense, there is no limit.

If it is really your primary residence, you can deduct the mortgage interest, but only if the residence is the collateral. In other words, if you just got an unsecured personal loan to buy the RV to live in, you could not deduct the interest. The RV would have to be the collateral. In other words, if you miss payments, and the bank has the right to repossess the residence if you default on the loan, then the interest you pay can be deducted.

No, the standard deduction is not a credit. It's a reduction of taxable income, and it cannot reduce your taxable income below zero. If your gross income is $24,000, the standard deduction would reduce this to $12,000 of taxable income. The 2018 tax on this would be about $1,250. If you get money back, you would get back any withholding that exceeds this $1,250.

Willoughby Krenzteinburg exactly, it would tax the 12k. But you mean that the tax of 12k isn’t half of the tax for 24k?? That’s my question.

@@pierre0227 I guess I'm not understanding the question. Maybe the confusion is because your income is exactly twice the standard deduction. If your income is $25,000, the standard deduction reduces this to $13,000. You are then taxed on the $13,000.

Interesting....but let me say this...regrettably it's not that easy...for example...IF we analyze this in a vacuum and ASSUME that BEFORE the tax act you're AGI (before taxable income) was 24k, back then your Standard deduction would have been 6k and you would have been taxed on 18k. But this doesn't take into account exemptions and of course I'm assuming you are single, no children and whole bunch of other factors that could change from year to year. NOW...we are in 2018 and your Standard Deduction in 12k. So in the SAME example, you would be taxed on 12k. Yes, the new Standard Deduction saves you taxes, but not exactly 1/2, and as you can see there are so many other variables. I hope that helps a little bit. Hang in there. No enough to 'captain your ship' and hire good tax professionals, but don't get caught up in the minutia. Get out and make money and plan with your advisor each year to save.

its a win win for renters and ppl earning less than 100k a year.

@@zarthemad8386 huh??? Theres no win win for middle or low income didnt you hear no long form deductions

I have to agree that middle to upper middle class are going to take a hit...UNLESS they own a small business and can capitalize on the 199A to make up for the hit on the 1040. We'll see. Our office is still betting that it will be a net/zero effect for even those people. Personally, I'm screwed too. I'll owe more...but hey! The economy is booming! :)

??? the poor. I'm upper middle class and always went above the old standard deduction But Not up to 24K!! so this benefits me and many of my friends....Nurses/other medical professionals...that don't have to itemize (pain) anymore who do not Donate a Ton but a good amount...and don't live in Upper Class areas with ridiculous property taxes/house values..which I believe is the majority of middle class throughout America. Some maybe just over the 24K so which is not significant compared to the xtra paperwork...So what is Middle class to you and where do They/We live?

I'm sorry. So technical. Not really the place for this on a KZfaq comment. I recommend you talk to your personal accountant and if you don't have one, we would love to be of service. I'm so sorry. Only so much time in a day and I try to give away as much free info as I can. So...if you need some tax support, please call my assistant in the accounting firm Josie Stewart at 435-865-5866 or josie@ke-cpas.com Thanks so much! mjk

Thanks so much!

@@MarkJKohler just called your office! Look forward to working with you.

2024 not to 2023

@@TikoBlane Perfect! Thanks Tiko

I know... I don't like it either. At least the economy is booming and that's worth something.

Standard vs Itemized doesn't have anything to do with schedule E. Schedule E is used for certain types of income - particularly rental real estate. There is no standard deduction for things like that. You just deduct expenses against any rental income and the expenses you listed would be qualified. If you don't have a rental and that was just a typo, and you are talking about schedule A, then your PMI is no longer deductible. The $12,000 of mortgage interest would be (assuming it is on debt of less than $750,000), but I would be curious what your property taxes were since they (along with any state or local tax) are limited to $10,000. Of course if these are expenses on a rental house, then none of this would be deductible on schedule A. Perhaps you could clarify.

*could i

I don't think you are going to get any write-off at all. You may want to associate with a charity aligned with your goals or ultimately start you own charity in the future. I'm sorry. But thank you for making the world a better place. :)

You mean, claim '10' on your W-4? If so, be careful. You won't have much withholding (if any at all) and could end up owing at the end of the year. I would look at your last year's tax return and see what happened. A good accountant will help you project how much you should have in withholding so you aren't caught with your pants down next year. mjk

Not the full credit. If she is a full time student there is another $500 child tax credit she could get.

Me too!

I'm so sorry...that would be terrible and I hope that didn't happen....and regrettably, under the new tax law, that loss would NOT be deductible. There might be a business deduction if you hadn't already written off the tools. Talk to your tax preparer if you were using them in a small business. Hope that helps. Good luck. Thanks for watching. Please share the videos with your friends, contacts and family. :)

@@MarkJKohler it did happen. unfortunately they were my personal mechanic tools. thanks for replying

Magician12345 no

If you paid out of pocket. Potentially. Make sure you have your receipt to show proof. If you're still confused, you should call h&r block and ask them.

It would have no effect because your standard deduction would already be more than the $1,000 so you would just take that - if you were to even file, which you wouldn't because you would not be required to file. Even if you did go through the futile process of filling out the form, schedule A deductions cannot reduce your taxable income to negative amounts, so your taxable income was zero before the deduction, and it was zero after. The tax on zero is zero, and you would owe zero in tax.