- The standard itemized deduction (Schedule A) for 2018 is $24,000 if you file married filing jointly and $12,000 if single. That means your medical expenses, taxes ( within the new lower allowable limit) interest, charitable contributions and misc deductions (many of these have been eliminated) must exceed that amount in order to give you any tax benefit.
- The personal exemptions for you, your spouse, and your children have been eliminated.
- You can no longer deduct the property taxes paid on foreign real estate used by you personally such as a second home or your primary residence located in a foreign country.
- If you have a foreign residential rental, you can now depreciate it over 30 years rather than the previous 40 years. Foreign commercial rentals are still depreciated over 40 years.
- If you retirement age and required to take withdrawals from your IRA, you can designated part or all of the mandatory withdrawal to a registered charity and that part of your withdrawal will not be taxed to you. This may be of benefit since the new standard deduction at $24,000 may make it impossible to get any tax benefit from charitable contributions except for very large amounts.
November 26, 2018
TAX LAW CHANGES FOR 2018 THAT MAY HELP OR HURT YOU AS AN EXPAT
What follow are a few of the obscure changes in the 2018 tax laws that may help or hurt you.