Will you be an itemizer or not in 2018?

[VagabondMD]

Again, based on what we know of the proposed new tax law, effective in 2018, will you be an itemizer or not? Were you in 2016/7?

I was in 2016, I am in 2017, I do not expect to be an itemizer in 2018. The standard deduction will far exceed my only fixed deductible expense (property tax, $10,000), so the $24,000 deduction will be what I use.

I am guessing that other docs, especially those without sizable mortgages, will be in the same boat.

As such, I will probably make a large donation to my DAF by the end of 2017, and this will be the source of charitable contributions, going forward. It is something that others might consider, assuming the bill becomes law.

[Dr. Mom]

We have always itemized.  Looks like we would not in 2018 if proposed becomes actual.

[StarTrekDoc]

charitable donations will always keep us itemized -- the question now is to whether bulk it into every other year (via Donation Fund) and take the standard deduction and pay off the mortgage or go the opposite way and max out the mortgage for cheap leveraged dollars.

I wish he kept his original $44k standard -- proposal.  That would have been very nice

 

 

[GXA]

 

We have always itemized, however without the SALT deductions, and the increased standard deduction, we will not in 2018 (based on the proposal).

Currently about $4,000 in property taxes and 10,000 in mortgage interest.  At this time we are planning a large contribution of appreciated stock to our donor advised fund to maximize the deduction at the current 39.6% rate for 2017.

[AZdoc68]

I have always itemized and don't mind doing a little extra record-keeping to do so.  It's doubtful I can continue if this proposal passes in its current form (which may not happen).

I paid off my mortgages years ago so MI isn't an issue but I'd be losing lots of property and state income tax deductions.  Getting past $24k without them looks unlikely to me.

[CM]

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[Hatton]

My business files as a schedule c so I am guessing I have to itemize.  I will ask my accountant.

[Re3iRtH]

Sorry for the silly question. I have my H&R block 2016 tax return pulled up. How do I tell if I was an itemizer or not?

[jz]

Looks like I'll be taking standard deduction for the future.

I just filled up my DAFs for 2017, and will aggregate  the DAFs every 3-4 years, staying mindful that any year's DAF can not exceed 50% of AGI.

[jz]

@Re3iRtH,   look at line 40, and the left margin notes.

[The White Coat Investor]

Vagabond MD wrote:

Again, based on what we know of the proposed new tax law, effective in 2018, will you be an itemizer or not? Were you in 2016/7?

I was in 2016, I am in 2017, I do not expect to be an itemizer in 2018. The standard deduction will far exceed my only fixed deductible expense (property tax, $10,000), so the $24,000 deduction will be what I use.

I am guessing that other docs, especially those without sizable mortgages, will be in the same boat.

As such, I will probably make a large donation to my DAF by the end of 2017, and this will be the source of charitable contributions, going forward. It is something that others might consider, assuming the bill becomes law.

Click to expand...

This of course assumes that the house bill actually becomes law.

For many docs, when you take away the state income tax deduction and double the standard deduction, they'll no longer be itemizing. We will though due to large charitable contributions.

[Re3iRtH]

I got it, cheers. Would have payed $2444. less taxes in 2016 under this bill. Gotta love it.

[Antares]

I will be making every attempt not to get myself even more aggravated by giving this a serious look until passage of the bill makes it necessary.

[VagabondMD]

The White Coat Investor wrote:

Vagabond MD wrote:

Again, based on what we know of the proposed new tax law, effective in 2018, will you be an itemizer or not? Were you in 2016/7?

I was in 2016, I am in 2017, I do not expect to be an itemizer in 2018. The standard deduction will far exceed my only fixed deductible expense (property tax, $10,000), so the $24,000 deduction will be what I use.

I am guessing that other docs, especially those without sizable mortgages, will be in the same boat.

As such, I will probably make a large donation to my DAF by the end of 2017, and this will be the source of charitable contributions, going forward. It is something that others might consider, assuming the bill becomes law.

Click to expand…

This of course assumes that the house bill actually becomes law.

For many docs, when you take away the state income tax deduction and double the standard deduction, they’ll no longer be itemizing. We will though due to large charitable contributions.

Click to expand...

I understand the nature of your primary charitable contributions (to some extent). Might it be worth overfunding a DAF now, and every two (or three) years based on your expected contributions, and then taking the standard deduction every other year (or two) in between? Or is it too much of a hassle? Does it violate the spirit of the commitment?

[CM]

Antares wrote:

I will be making every attempt not to get myself even more aggravated by giving this a serious look until passage of the bill makes it necessary.

Click to expand...

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