? on new 2018 ax deduction changes re mileage and property

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
luberhill
Posts: 83
Joined: Mon Apr 07, 2014 4:01 pm

? on new 2018 ax deduction changes re mileage and property

Post by luberhill » Mon Feb 12, 2018 6:13 pm

Ok im a w-2 employee salesman that drives my own car about 30k miles a year seeing customers. I have always written off my work mileage at like .50 a mile because my company does NOT reimburse ...now I understand that deduction is gone for w-2 employees,,but I cant find a reputable source spelling it out... Also ive always written off my road tolls, is that gone too ?
And property taxes ?

Thank you

User avatar
Pajamas
Posts: 6015
Joined: Sun Jun 03, 2012 6:32 pm

Re: ? on new 2018 ax deduction changes re mileage and property

Post by Pajamas » Mon Feb 12, 2018 6:25 pm

Those deductions for unreimbursed employee expenses are no longer allowed on Schedule A.

Property taxes will no longer deductible for individuals. You can deduct 2018 property taxes only if they were both assessed and paid in 2017.

The IRS has not come out with any specific announcements as far as I know but there has been a significant amount of analysis of the new laws in reliable publications. Take your pick:

https://www.google.com/search?q=unreimb ... enses+2018

https://www.google.com/search?q=propert ... tible+2018

Gill
Posts: 4481
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: ? on new 2018 ax deduction changes re mileage and property

Post by Gill » Mon Feb 12, 2018 6:28 pm

Pajamas wrote:
Mon Feb 12, 2018 6:25 pm
Those deductions for unreimbursed employee expenses are no longer allowed on Schedule A.

Property taxes will no longer deductible for individuals. You can deduct 2018 property taxes only if they were both assessed and paid in 2017.

The IRS has not come out with any specific announcements as far as I know but there has been a significant amount of analysis of the new laws in reliable publications. Take your pick:

https://www.google.com/search?q=unreimb ... enses+2018

https://www.google.com/search?q=propert ... tible+2018
Huh? Property taxes no longer deductible? Better take another look.
Gill

luberhill
Posts: 83
Joined: Mon Apr 07, 2014 4:01 pm

Re: ? on new 2018 ax deduction changes re mileage and property

Post by luberhill » Mon Feb 12, 2018 6:31 pm

Yea I heard the property taxes WERE deductabe IF under 10k ?? So I guess im only looking for replies from people who know for sure....Thank you

Gill
Posts: 4481
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: ? on new 2018 ax deduction changes re mileage and property

Post by Gill » Mon Feb 12, 2018 6:33 pm

luberhill wrote:
Mon Feb 12, 2018 6:31 pm
Yea I heard the property taxes WERE deductabe IF under 10k ?? So I guess im only looking for replies from people who know for sure....Thank you
I know for sure. They are deductible with a $10,000 cap.
Gill

TwstdSista
Posts: 917
Joined: Thu Nov 16, 2017 4:03 am

Re: ? on new 2018 ax deduction changes re mileage and property

Post by TwstdSista » Mon Feb 12, 2018 6:33 pm

Employee deductions for home office, unreimbursed travel expenses and unreimbursed work expenses are no longer.

Property taxes are still deductible up to the $10,000 SALT (state and local taxes) limit.

luberhill
Posts: 83
Joined: Mon Apr 07, 2014 4:01 pm

Re: ? on new 2018 ax deduction changes re mileage and property

Post by luberhill » Mon Feb 12, 2018 6:37 pm

so would road tolls still be deductible ? How about internet and cell phone expenses ?? Again I am a w-2 employee...outside sales

TwstdSista
Posts: 917
Joined: Thu Nov 16, 2017 4:03 am

Re: ? on new 2018 ax deduction changes re mileage and property

Post by TwstdSista » Mon Feb 12, 2018 6:46 pm

My understanding is: No. No. And no.

Sorry, these are probably fairly significant in your line of work.

ETA: for tax year 2018 and forward. You can still deduct these things on your 2017 tax return which you should be filing this year.

Carl53
Posts: 1588
Joined: Sun Mar 07, 2010 8:26 pm

Re: ? on new 2018 ax deduction changes re mileage and property

Post by Carl53 » Mon Feb 12, 2018 7:16 pm

http://apps.washingtonpost.com/g/docume ... bill/2678/
the following is from pg 622.
Senate Amendment
The Senate amendment suspends all miscellaneous itemized deductions that are subject
to the two-percent floor under present law. Thus, under the provision, taxpayers may not claim
the above-listed items as itemized deductions for the taxable years to which the suspension
applies. The provision does not apply for taxable years beginning after December 31, 2025.
Effective date.−The provision is effective for taxable years beginning after December 31,
2017.
Conference Agreement
The conference agreement follows the Senate amendment.
The prior couple of pages enumerate prior provisions that were subject to the former two percent AGI threshold that are suspended. Included are the business expenses in question.
Unreimbursed expenses attributable to the trade or business of being an employee
In general, unreimbursed business expenses incurred by an employee are deductible, but
only as an itemized deduction and only to the extent the expenses exceed two percent of adjusted
gross income.227
Present law and IRS guidance provide examples of items that may be deducted under this
provision.
I did not search for it, but the property tax info is elsewhere in the document.

I can see where for a salesperson or rural mail carrier that might put on 50000 or 25000 miles a year making perhaps $100000 or $50000, losing a $23000 deduction for the salesperson or $11500 for the mail carrier would be major.

luberhill
Posts: 83
Joined: Mon Apr 07, 2014 4:01 pm

Re: ? on new 2018 ax deduction changes re mileage and property

Post by luberhill » Mon Feb 12, 2018 8:42 pm

im thinking that they doubled the std deduction so that will help,,,but will it offset ...dunno

Spirit Rider
Posts: 8377
Joined: Fri Mar 02, 2007 2:39 pm

Re: ? on new 2018 ax deduction changes re mileage and property

Post by Spirit Rider » Tue Feb 13, 2018 2:10 am

I would be jumping on this now if I was employed in such a job. They would either compensate me for the deduction loss or I would be looking elsewhere.

Post Reply