How the Changes in Tax Legislation will affect you.
Does your work involve using your vehicle?
If you use your motor vehicle for business related purposes, you are probably familiar with the mileage deduction. As of 2017, the rate of deduction has changed. Whether you own a sedan, van or pickup truck, you will need to understand that your dollar will not stretch as far as it did in 2016.
In 2016, the average business owner could claim 54 cents. With a five cent decrease during this year, it means that you can claim less on the number of miles you have traveled. If you travel with regard to medical related purposes, you can now claim two cents less than last year. The rate was 19 cent per mile. It has decreased to 17 cents per mile.
So if you are using your vehicle for business related purposes, you should take these changes into consideration and try to preserve fuel where necessary as you will not be able to claim as much as you could in 2016.
Seniors are no longer subject to tax privileges.
In 2016, senior citizens over the age of 65 years of age could claim medical expenses as a deduction if it accounted for 7.5 percent of their total expenses in a fiscal year. This has changed and placed senior citizens over the age of 65 on the same level as ordinary citizens, which means that your medical expenses have to account for ten percent of your annual expenses to count as a deduction.
Do you own real estate?
If the answer is yes, than congratulations. The real estate tax exemption has increased by $40,000. This means that if you own property over the amount of $5,490,000 and pass away, your relatives will be exempt up to that amount.
What we are seeing here is a shift in the tax legislation. The health and well-being of American citizens over the age of 65 is no longer a cause of concern. On a balance of scales, it appears that priorities are favoring the wealthy and not the senior citizens. There is also a lack of support for small businesses as the mileage deduction has decreased the amount that is deductible whilst oil prices remains bullish. What are your thoughts on the situation?
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