ProfessionalTaxSoftwareReviews.com sheds light on new tax reform changes to expenses, deductions and limits on depreciation

By | June 18, 2018

ProfessionalTaxSoftwareReviews.com offers updated information provided by the IRS in reference to rule changes for moving expenses, vehicle expenses and unreimbursed employee expenses as stated in the Tax Cuts and Jobs Act.

California, USA (PRUnderground) June 18th, 2018

On Friday, the IRS offered an updated notice relating to the Tax Cuts and Jobs Act that may potentially affect millions of tax returns submitted by professional preparers in the coming years.  The tax reform that Congress has passed last year suspends the deduction for moving expenses beginning Dec. 31, 2017 up until Jan. 1, 2026. With this suspension, the IRS will not allow deductions for using an automobile with the mileage rate listed in 2018 Standard Mileage Rates, Section 3; the suspension will not apply to active duty armed forces moving due to a military order.

Additionally, the new tax overhaul has suspended miscellaneous itemized deductions subject to specific limits.  The new change affects expenses and deductions such as meals, travel and entertainment that employers are not reimbursing.  The updated Standard Mileage Rates, superseding the older Section 3 information, can be found on the IRS website under Notice 2018-42.

In regards to passenger automobile depreciation limitations, the updated tax law increases the limitations by a significant amount compared to previous years.  The maxed out standard cost for an automobile can not be more than $50,000 for passenger automobiles, trucks or vans that have began service after Dec. 31, 2017, with the previous limitations being $27,300 for passenger automobiles and $31,000 for trucks and vans.

For professional tax preparers, it is important that they verify the professional tax software they use be updated with this new information so as to avoid any potential errors when submitting returns for tax year 2018.

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Source: PRUnderground.com