When the Tax Cuts and Jobs Act was signed into law in December 2017, it authorized changes to itemized deductions and created some confusion for taxpayers about which deductions would meet new standards for eligibility. As individuals and business owners plan to file their returns, tax planning specialists are prepared to field questions. To get a jump-start on this year’s tax planning season, here’s a list of common itemized deductions.

4 Allowable Itemized Deductions

1. Donations to Charities

Monetary and property contributions to charitable organizations remain tax-deductible and can be itemized. Tax planning agents warn, however, that filers are restricted to contributions that constitute 50% of their adjusted gross income (AGI) for cash and 30% for property. Although a tithe paid to support a church can be itemized, donations to families in financial need and political campaigns are not eligible. 

2. Property Taxes

Homeowners may still claim property taxes as an itemized deduction under the 2017 law with a key exception. If taxes were paid in a year other than the year for which you’re filing a return, they can’t be deducted.

3. Home Mortgage Interest

The interest on a mortgage may also be tax-deductible. Eligibility to claim mortgage interest as an itemized deduction depends on when the home was purchased. For mortgages secured after December 15, 2017, married couples filing jointly may deduct interest on the first $750,000 of the purchase price. Loans taken out before December 15, 2017, have a $1 million threshold.

4. Theft & Casualty Losses

If your home or vehicle was burglarized, stolen, vandalized, damaged, or destroyed, you may be able to itemize the losses and claim them as deductions if the amount is $100 or more. You can’t claim losses if they were reimbursed from your homeowners or auto insurance provider.

The office of William G. Molitor, CPA, in St. Peters, MO, specializes in helping clients understand new tax laws and how changes to the tax code may affect them. Their experienced team of tax planning specialists and accountants provides customized guidance tailored to your unique financial situation. To learn more about their services for both individuals and businesses, visit their website, or call (636) 926-0502 to schedule a consultation.