Blog - Changes for 2018 Taxes
December 11, 2018
As you do your 2018 income tax returns make sure you consider whether or not you can take advantage of the new Section 199A deduction of 20% of qualified business income. The details on this new pass through deduction are lengthy. Ask your tax preparer though if you think you might qualify.
They have announced that the unified credit amount for 2019 will be increased from the current $11,180,000 to $11,400,000. This means that you can give away during your life and at death this total without paying any federal estate tax. If you are married, you can effectively transfer twice the amount or $22.8 million to your heirs without federal estate tax. That is a big number. To remind you, this reverts to $5 million in 2026 unless Congress takes some action. The annual gift tax exclusion is still $15,000 per donee. Finally, do not forget to use the Iowa College Savings Program if you are an Iowa resident. In 2018, you can give up to $3,319 to each recipient and take it as an Iowa income tax deduction.
This blog post is meant for informational purposes only and is not meant to provide legal advice in any particular circumstance or factual situation. You should consult with an attorney prior to taking any action regarding the information contained herein. If you have questions concerning this post, please contact Daniel.Dykstra@heidmanlaw.com.