We’ve been analyzing the benefits and disadvantages under the new tax law. So far most are saving Federal tax dollars, specifically those whom have been paying alternative minimum tax in the past.
Although the state and local income taxes and the real estate taxes are limited to $10,000 in total, these individuals lost the benefit of those deductions because of the AMT. As the phase out for the AMT exemption amount has been increase substantially, the AMT no longer comes into play. Therefore their regular tax is now higher than the AMT and therefore less than their prior years tax, including the AMT.
Though our studies over the past month, we can be sure how this impacts you. The are 6 factors in most returns that are impacted by these changes. With a comprehensive analysis we can discuss your 2018 tax position with you.