Tag Archives: Deductions

The Good and Bad News on Charitable Deductions under the 2017 Act

The good news first:a. The 50% of adjusted AGI limitation maximum deduction amounts in any one year is increased to 60% as to cash contributions.b. The Section 68 3% “Pease limitation” phase-out of itemized deductions is out of the law … Continue reading

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IRS Issues Notice on State and Local Tax Deductions

On May 23, 2018 the U.S. Department of Treasury and the Internal Revenue Service issued Notice 2018-54, which announced new  proposed regulations addressing state and local tax payment deductions for federal income tax purposes. The 2017 Tax Cuts and Jobs … Continue reading

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Marital Deductions & Non-Citizen Spouses

A QDOT is a specific type of marital deduction trust that is designed to ensure that non-citizen spouses will eventually pay any taxes that may be due upon distribution of the principal from the trust, even if the surviving spouse … Continue reading

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The Magic Date for Alimony and Tax Deductions: December 31, 2018

The Tax Cuts and Jobs Act “TCJA” has a definite effect on alimony payments.  Prior to the new law, alimony payments could be deducted by the payer for federal income tax purposes and recipients had to report the payments as … Continue reading

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How the tax overhaul will affect spousal support deductions

The new tax overhaul will remove a 75-year-old tax deduction for alimony payments. The new rule will not affect anyone who divorces prior to 2019; however, it will certainly change divorce negotiations. What’s changing? Currently, the spouse paying alimony can … Continue reading

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