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/biz/ - Business & Finance

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5246534 No.5246534 [Reply] [Original]

so usa tax reform is going to pass anyone understand why anyone would do itemized deductions if they cap at $10k when you can have standardized deductions of $12k for single filer?

>> No.5246591
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5246591

>>5246534

>asking actual business related questions on /biz/

>> No.5246648
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5246648

>>5246534
just use turbotax and bitcoin.tax

>> No.5246652
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5246652

>>5246534
So you can get $2K back, pal.

>> No.5246840

>>5246591
kek maybe if I said it was to figure out my taxes for all those crypto coins ive sold more would be interested...

>>5246652
you can only choose itemized or standardized deductions not both

>> No.5246904

Where did you read that you can only itemize up to 10K?

>> No.5247026

>>5246840

What’s the diff

>> No.5247028

>>5246904
it's in the new 2018 tax bill just wondering why anyone would do itemized does it help more with state tax somehow?

>> No.5247099

>>5247026
standardized deductions are set amounts.
Itemized deductions didn't have a limit, but now they are set to $10k max. Itemized items would be state and local taxes like property taxes.

>> No.5247106

>>5247028
My understanding was that you can itemize state taxes up to 10K plus whatever you itemize on top of it and the standard deduction is 12K total, you can deduct state tax if you use standard.

>> No.5247160

>>5246840
Sorry, 10K cap is for state and property tax. You choose to itemize if you have more than 2K in other shit to deduct.

>> No.5247232

>>5247160
I still don't get it lol good thing I have a cpa friend I'll just ask him...

>> No.5247296

>>5247232
You can deduct up to 10K in state tax and property tax but if you have any other deductible expenses, like IRA, 401K, home office, charity, you can itemize that to the moon

>> No.5247328

>>5247296
I don't think that applies in the new tax bill from what I see the itemized deductions cap at $10k and that's it.

>> No.5247424

>>5247328
It makes no sense to cap total deductible amount, then it's not itemized anymore, just lower standard lol. A crazy person would never do that, you have self-employed people who make 500K but have high expensed and shit, can't take that away. Not to mention 401K. It's just SALT and property.

>> No.5247528

>>5247424
ok that's that was confusing didn't understand why someone would do itemized if it was capped at 10k with standard at 12k lol. Thanks

>> No.5247559

Btw you can find out your savings here (probably ~$2k): http://taxplancalculator.com/

If you want every single fact, you can read the full conference agreement here: http://docs.house.gov/billsthisweek/20171218/Joint%20Explanatory%20Statement.pdf

>> No.5247570

>>5247528
My plan is to deduct capital loss on shitcoins lol

>> No.5247593

>>5247559
awesome thanks for those links

>>5247570
kek

>> No.5247720

>>5247570
That's not really what's affected by "itemized vs standard deduction". Capital losses count against your capital gains, part of calculating your income to begin with. It's similar to the 401k (where income is basically ignored because you sent it off to Retirement Land).

(Itemized) Deductions come later in the process for shit like charity, interest on your mortgage, and state/local/property taxes. The bill only comes into effect next year though, so the $10k SALT cap (or $750k mortgage limit) isn't in play yet.