Tax deduction

[ACN]

I'm saving all my receipts for medical and will reimburse myself in my 60s/70s from my HSA

[SpacemanSpiff12]

https://www.bankrate.com/mortgages/t...ousing-legacy/

I thought Trump got rid of home mortgage interest deduction?

From the article: "Then came Trump’s tax reform of 2017, and the mortgage interest deduction essentially disappeared. That’s because Trump doubled the standard deduction from $12,700 to $24,000 for married taxpayers filing jointly. That meant most homeowners would not pay enough mortgage interest to take advantage of the deduction."

They capped the mortgage interest deduction at 10K and capped the eligible mortgage amount at $750,000. The deduction didn't go away; it's just worth less and far fewer people are using it. But for many here, as Peds said, between SALT + mortgage interest + charity there's still the possibility of itemizing.

[Nysoz]

If you invest on margin, margin interest is tax deductible

It might be too late now but 30% or something of costs associated with setting up charging at home is a credit

[Larry Ragman]

WCI’s summary of possible tax mitigation strategies you can use. https://www.whitecoatinvestor.com/le...your-tax-bill/

[VentAlarm]

From the article: "Then came Trump’s tax reform of 2017, and the mortgage interest deduction essentially disappeared. That’s because Trump doubled the standard deduction from $12,700 to $24,000 for married taxpayers filing jointly. That meant most homeowners would not pay enough mortgage interest to take advantage of the deduction."

They capped the mortgage interest deduction at 10K and capped the eligible mortgage amount at $750,000. The deduction didn't go away; it's just worth less and far fewer people are using it. But for many here, as Peds said, between SALT + mortgage interest + charity there's still the possibility of itemizing.

I’m 99% sure you’re wrong about the mortgage interest deduction capping at 10k. Reference?

We’re itemizing. We tithe which already hits the standard deduction and deduct the full amount of mortgage interest.

Edit: I just looked up my tax return and reviewed schedule A. I think you’re conflating the mortgage tax deduction and the SALT deduction.

[MoneyMoth]

I’m 99% sure you’re wrong about the mortgage interest deduction capping at 10k. Reference?

We’re itemizing. We tithe which already hits the standard deduction and deduct the full amount of mortgage interest.

Edit: I just looked up my tax return and reviewed schedule A. I think you’re conflating the mortgage tax deduction and the SALT deduction.

that is correct

mortgage deduction is capped at $750k mortgage

the $10k cap is for state and local taxes

[jfoxcpacfp]

Posting this out of the office, but I know of clients who utilize mortgage interest deduction at $30k+. As MoneyMoth stated, you’re conflating SALT and the mortgage interest deduction. If you are charitably inclined, the best tax dodge is a DAF contribution (appreciated investments preferred) strategically timed to allow you to optimize standard deduction to maximum effect in the “off” years. Tax planning (good CPA can be very valuable here) with comparative strategies that you can view side-by-side in a report to help you make your decision is extremely beneficial in the situation where you’ve paid down your mortgage to the point that you’re under $15k int/year.

If you are a W2-only family then, yes, your choices are restricted. But you should not allow potential tax deductions to determine your choice of employment. And you should never spend money simply to save taxes.

[SLC OB]

As an individual? Very limited. I submit business mileage to our group practice which is a S corp. Practice reimburses me and it can take the deduction.

On my state taxes I have 529 deduction. There is also a tax credit program for rural hospitals in my state. You used to be able to buy tax credits that could be used for state taxes + counted as a charitable deduction on your Federal taxes. It was wildly popular until the Treasury nixed the charity deduction. I still buy credits but I do it by donating appreciated ETFs to one of the qualified hospitals and save on the long-term capital gains. Hospital has a foundation that is a charity and accepts stock donations.

What is this tax credit program for rural hospitals that you speak of? What state?

[jacoavlu]

lots of tax deductions don’t actually show up on personal tax returns

[jfoxcpacfp]

What is this tax credit program for rural hospitals that you speak of? What state?

I’m most familiar with the one in OR, but GA also has tax benefits. Just “rural physician tax credits” or “rural hospital tax credits” and you’ll get several hits.

[zlandar]

What is this tax credit program for rural hospitals that you speak of? What state?

Yep it's GA. GA has film, rural hospital, and private school scholarship credits. When the Treasury changed the rules on charitable deductions the last two took a hit. There is no financial incentive to donate cash and receive a 1:1 credit. Donating appreciated stocks/ETFs changes that.