The recent tax reform added new tax code Section 67(g), which states: “No miscellaneous itemized deduction shall be allowed for any taxable year beginning after December 31, 2017, and before January 1, 2026.”
Holy moly!
John is a W-2 mortgage banker paid on a commission basis and during 2018, he will incur $27,000 of employee business expenses. His 2018 tax deduction for his employee business expenses will be zero. How do you think John will feel?
Before the recent tax reform, employees were already getting the short end of the stick when it came to business expenses. Why? The alternative minimum tax (AMT) did not allow tax deductions for employee business expenses, so those employees who had to pay the AMT were granted no business deduction tax benefits.
Of course, not all employees suffered the AMT. Those who did not simply suffered a 2 percent of adjusted gross income floor on deductions that fell into the miscellaneous itemized deduction category.
All of this was bad, but NOTHING compared to ZERO business deductions—period. Getting a zero deduction for your legitimate business deductions is absolutely unfair. Is it possible that you can get even? ... Log in to view full article.
