2019 Tax Law Changes


Solar Credits -- The 30% Solar Credit for installing solar to your personal use  properties is reduced to 26% if installed after 12/31/19.  The credit drops to 22% if installed after 12/31/20 and to no credit available after 12/31/21.

Healthcare Insurance -- There is no federal mandate for not having healthcare insurance in 2019.  California has introduced penalties for failure to carry healthcare insurance.  The penalty is $695 per person and a minimum of $2085 for a family of four.

Bitcoin Transactions -- Biticoin activity must be reported on a Schedule D as must be done for stocks.

Mileage Allowance -- The Business Mileage Allowance for 2019 is $.575 per mile; Medical Allowance is $.17 per mile and Charity is $.14 per mile.

Medical Expense Deduction --  The Medical Deduction on the Schedule A is reduced by 7.5%.

Mortgage Insurance Deduction --  Mortgage Insurance paid is still a deduction on the Schedule A or Office in Home.

IRA Deduction Limit -- $6000 is the maximum contribution to a Traditional IRA.

Gifts -- The Gift Limit without taxation is $15,000 per person.

Student Loan Interest Deduction -- The Student Loan Interest is a deduction with a phase-out limit for a single of $70,000 to $85,000 and married from $140,000 to $170,000.

Estate Tax Exclusion -- The exclusion in 2019 is $11.58 Million.  In 2025 the estate tax exclusion is scheduled to revert back to pre-2018 exclusion of $5 million.

Plugged-In Electric Vehicle Credit -- Check with the dealer if the credit is still available for the electric vehicle you have chosen. The Tesla credit is no longer available.


Tax tip: organizing your expenditures by category throughout the year will save time during tax season.

Copyright 2019