His only itemized
deductions would be state and local taxes (SALT) paid (capped at $10,000 a year) and $10,000 of charitable donations, for a total of $20,000.
A claimed the following itemized
deductions on his 2018 federal income tax return:
For federal purposes, the itemized
deduction limitation for certain cash contributions has increased from 50% to 60% of your FAGI.
As for single taxpayers, the key point is to keep itemized
deductions in their tax planning.
The bunching of deductions, which involves timing the payments of tax-deductible items to maximize the itemized
deductions in one year (rather than spreading the different payments across multiple tax years), is a planning idea that was common under prior tax law and now takes on added importance.
These expenses were deductible to the extent they exceeded 10% of adjusted gross income (AGI) and only if you itemized
Benzarti estimates the perceived compliance costs to tax filers by computing whether there were "too few" taxpayers with itemized
deductions slightly greater than the standard deduction threshold.
While Murray discusses the availability of an itemized
deduction election on a timely filed return, tax practitioners should also consider the broader implications of failing to file a timely return.
Knight clarified which of an estate's or NGT's expenses are subject to the 2 percent floor for itemized
(ii) An itemized
deduction for state and local income taxes, plus a separate itemized
deduction for qualified motor vehicle taxes (above and [paragraph] K-4518 et seq.), or
Charitable contributions are generally fully deductible as long as your itemized
deductions exceed the standard deduction and you don't surpass statutory limits--50%, 30% or 20% of your adjusted gross income (AGI), depending on what you donate and whether the recipient is a public charity on an operating or non-operating foundation.
Legal fees and costs are deductible only as miscellaneous deductions under IRC section 212 and are subject to both the 2% of AGI limit and the 3% overall limitation on itemized
deductions and are disallowed under the AMT.