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What You Need To Know About 2019 Taxes

Tax season is here, and while it’s on many people’s to-do lists, there are some things you should know about filing your 2019 taxes this year. You may remember that when The Tax Cut and Jobs Act was rolled out several years ago, it was a very confusing time for most everyone. The change of tax rates and deductions really caused us to reconsider how our taxes were being prepared and filed.

Changes to 2019 Taxes

While many of these changes first came into effect in 2018, there have been ongoing, additional adjustments that you’ll want to keep in mind this tax season, including:

  • To account for inflation, income tax brackets for 2019 have been adjusted.
  • Standard deductions for those who file as ‘single’ have increased by $200 since last year to now total $12,200, while those filing jointly are seeing a $400 increase, now placing their deductions at $24,800.
  • There is no longer a tax penalty for those who have not had health insurance coverage for part or all of 2019.

Live in a Co-Op? 

Just as your employer is obligated to send you your year-end tax information by January 31st, the same applies for co-op deduction letter from the board or management.

This information is known as the 1098 form  to the IRS and specifies how much of a tax deduction each owner can take on their personal income tax returns. The tax deduction amount is based on the amount of mortgage interest and real estate taxes paid by the co-op corporation each year. A co-op owner calculates her or his dollar deduction amount by adding these two figures and multiplying the result by the number co-op of shares owned. NYC real estate professionals commonly refer to a co-op’s percentage of tax deduction for monthly maintenance. The percentage of tax deductibility of maintenance is calculated by dividing a co-op apartment’s annual tax deduction dollar amount by the annual sum of a co-op’s monthly maintenance payments.

If your board or management has not yet sent the information you need, one option is for the unit owners to join in a complaint letter to the managing agent and put them on notice that they will support finding a new managing agent if they aren’t able to meet the tax deadlines.

To learn more about  changes that are taking place this tax season, check out this article written by Jeff Stimpson for Investopedia.com

Remember, you still have plenty of time to brush up on these changes, but April 15th will be here sooner than we realize!

 

Looking for more hands-on help avoiding tax traps you might encounter when buying or selling? Try the pros below:

Fuchs and Levine

2003 Jericho Turnpike # 1, New Hyde Park, NY 11040

(516) 328-6700

 

Lupo Tax Services

206 Sackett St, Brooklyn, NY 11231

(718) 834-1819

 

Gabor Tax Law (Best for property taxes and capital gains) | Richard Gabor

1878 Victory Blvd, Staten Island, NY 10314

(718) 390-0555

 

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