2019 Deduction Changes

By: M.Alequin

 

New tax law on meals and entertainment deduction

 

Type of Expense

2019

Entertaining clients (concert tickets, golf games, etc.)

0% deductible

Business meals with clients

Note: Receipts, customer name and purpose must be recorded

50% deductible

Office snacks and meals

50% deductible

  • Food and drinks provided free of charge for the public for promotional events.
  • Food included as taxable compensation to employees and included on the W-2
  • Company Wide Party

100% deductible

Meals & entertainment (included in compensation)

100% deductible

 

State taxes and real estate taxes deduction change (SALT)

Starting in 2018, taxpayers cannot deduct more than $10,000 of total state and local taxes and real estates taxes.

. The  limit of $10,000

Example: So, your state tax bill is $6,000 and your state income tax bill is $7,000, you can only deduct $10,000.

Note: This tax law provision is scheduled to expire after 2025.

 

 Standard Deduction for most taxpayers 

    Tax Year

2017

2018

2019

      Filing Status

Standard deduction

Standard Deduction

Standard Deduction

Single or Married Filing Separately

 

$6,350

 

$12,000

 

$12,200

Married Filing Jointly

$12,700

$24,000

$24,400

Head of Household

$9,350

$18,000

$18,350

 

 

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