2019 Tax Law Changes – even though most of the tax law in effect this year is unchanged from the prior year, there were a few important changes I wanted to bring to our attention. In particular the IRS is asking about virtual currency this year as a point of emphasis, so if you acquired or sold virtual currency in 2019, you must disclose it, and report any resulting gains/losses from any dispositions. Another important change this year is the deductibility of “mortgage premium” insurance, which was not deducible in the prior year, although there are some gross income restrictions. Additionally, for those taxpayers who aren’t able to take the tuition credit due to income limitations, they are allowed to take a deduction for tuition & related fees, as an adjustment to income instead. Also, for those taxpayers who are able to itemize their deductions the AGI threshold for including medical costs was reduced back down to 7.5% of AGI, whereas it had previously been 10% in the prior year for taxpayers under 65 years of age. Please contact us if you have any questions about these tax law changes implemented for the 2019 tax year.
Mike and Staff