Tax preparers warn your refund may be smaller than usual this year. Here’s why.

FROM LATIMES.COM

Doing your taxes isn’t just about placing the correct numbers in the boxes of a form and then, as many hope, collecting a refund. There’s also how you feel about your taxes.

“It’s a very emotional transaction,” said Kathy Pickering, executive director of the Tax Institute, the research and analysis arm of tax-preparation giant H&R Block Inc.

“People are really happy when they get a big refund,” she said. “Or they’re either sad or distressed or confused if they’re not getting the refund they were hoping for — or end up owing.”

And this year many Americans are expected to be less than happy because of last year’s sweeping federal tax overhaul, which has Block and the rest of the tax-preparation industry bracing for plenty of sour reactions now that tax filing season is about to start ahead of the April 15 deadline. They’re doing things such as extra customer education, employee training and even role-playing exercises to prepare for the financial mood swings ahead.

The tax overhaul represented the biggest change in the U.S. tax code since 1986, altering the tax situation for many of the 154 million people expected to file individual federal returns this year with the Internal Revenue Service.

The latest redo, among other things, lowered tax rates for many individual income levels and raised the standard deduction. But it also eliminated many deductions that people had itemized to lower their tax burden — such as union dues and the fees that tax preparers charge — and it placed caps on others, such as state and local income tax deductions.

The upshot: While some filers will owe less or get a larger-than-expected refund, many others will be in the opposite camp, especially if they did not adjust their W-4 form that determines how much of their weekly income is withheld for taxes.

In other words, people who did not change their withholding might have enjoyed more take-home pay during 2018 but now they won’t get the refund they might have expected. Uncle Sam in effect gave them more money throughout the year instead of waiting to return the cash with a refund.

That refund averaged about $2,800 for the majority of individual taxpayers last year, the Internal Revenue Service says, but that’s likely to change for 2018 returns.

Jackson Hewitt Tax Service Inc., a tax-preparation firm with nearly 6,000 U.S. offices and 20,000 preparers, said it took a recent survey that found that 72% of respondents had not updated their paycheck withholding since the tax revamp took effect, “meaning that taxpayers or their employers’ payroll systems could be using incorrect numbers.”

“Taxpayers have heard they may see more money as a result of the tax law changes, but more money doesn’t necessarily mean in their tax refund,” said Lisa Greene-Lewis, a tax expert at TurboTax, the unit of Intuit Inc. that makes do-it-yourself tax software used by more than 36 million filers. “They may have seen it throughout the year in their paychecks because the tax rates were lowered.”

That’s why the IRS and the tax-preparation industry has been trying for the last several months to persuade people to adjust their W-4s if necessary, using calculators they’ve provided that incorporate the tax changes. (The IRS calculator is here.)

Further clouding matters was the federal government’s partial shutdown, which initially left the IRS with a skeletal staff. The Trump administration said it would call about 36,100 additional IRS employees back to work — without pay — so that on Jan. 28 the agency could start processing returns and issuing refunds.

But with a deal reached Friday to end the shutdown, that cloud was lifted.

There’s also this wrinkle: Although the tax changes were partly intended to simplify filing federal taxes — for instance, many people who had itemized are now expected to use the standard deduction — the same can’t be said for state income tax rules.

“It’s going to cause enormous problems this year because the states are in a much different position,” which could result in some taxpayers taking the standard deduction on their federal return and itemizing on their state return, said Mark Steber, Jackson Hewitt’s chief tax officer.

Tax rules in California and other states “were not a piggyback onto the federal” changes, he said.

The tax-preparation firms know that some customers tend to blame them, and not new tax laws, when the filers don’t get the refund they expect or end up with a larger tax-due balance than anticipated. That can send miffed clients away and cut into the preparers’ revenue.

“We have had to do a lot of work to prepare our tax preparers for that actual conversation,” in addition to the massive job of training preparers and rewriting tax-preparation software, Pickering said. “It has been all hands on deck ever since the law got passed.”

Block has nearly 10,000 U.S. offices handling returns during tax season, along with its brand of tax preparation software. Between the two, Block handled 23.3 million returns last year.

“For many people, the filing event is the largest financial transaction of the year, and they really look forward to getting a refund,” Pickering said. “It’s what they use to pay bills, catch up on late bills or pay off their holiday expenses, for example.

“If they’re used to getting a refund of, say, $3,000 and now they’re getting one of $2,000, that could have a pretty significant impact,” she said.

That’s one reason why Jackson Hewitt’s training has included role-play exercises, so that preparers can correctly respond to clients’ gripes, Steber said.

“Maybe their overall tax liability actually is lower, but they got their money during the year” with more money in their paycheck, Steber said. “But because their refund is $1,000 less, they had an unhappy client experience.”

To avoid that problem, the IRS for months has been urging taxpayers to check their withholding to adapt to the changes, and the agency will keep beating that drum.

“We definitely will continue to urge people to check their withholding going forward,” so that filers “avoid surprises later,” IRS spokesman Raphael Tulino said.

Gerard Cannito, president of the National Assn. of Tax Professionals, noted that “a lot of tax preparers weren’t even in the business in 1986,” when the last major tax overhaul occurred and will face a big test when they meet with clients this year. “They have not gone through something as wide-sweeping as this.”

Taxpayers “see us after the year is over and everything has transpired, and then they want us to wave a magic wand and fix it all,” Cannito said. “There’s not a whole lot we can fix once the year is over.”

Tax Season; What’s New?

FROM www.norwoodnews.org

Everything! New forms, worksheets, calculations, formulas, and schedule sheets

The Trump tax law, in effect over a year ago, is now coming to visit us for the first time this income tax season. Do you think you’re getting the same refund as in the past? Think it should be bigger?

Well, let me start with some temporary bad news first. As per the new law, all taxpayers in 2018 should have received (on average) a two percent decrease in tax rates. So, if you made $50,000 in 2018, and say your federal taxes were at 25 percent versus today’s 23 percent, you would have collected an extra total tax savings of $1000 tax free. Congratulations!

Now, like I said, did you pay taxes on it? No! Oops, ($1,000 x .23 percent) I guess you’re gonna pay back $230 of that money back! It’s called your tax refund!

Yes, and that’s just the beginning. While we do expect some tax situations to actually provide more tax savings, we sadly expect most Americans, if they have not prepared, to lose most of their prior refund. And if your refund was, in the past, a small one, get ready to possibly owe.

So, we cannot stress enough that this year, more importantly than any other, it is important to learn tax planning not tax preparation.

Tax planning is learning how your lifestyle fits and adapts to tax laws designed to maximize in lowering your tax liability or to receive higher tax refunds.

But let’s start off by going over what’s new:

*Form 1040 has been redesigned for 2018. The new design uses a “building block” approach. Form 1040, which many taxpayers can file by itself, is supplemented with new Schedules 1 through 6. These additional schedules will be used as needed to complete more complex tax returns.

*Forms 1040A and 1040-EZ no longer available. Forms 1040A and 1040-EZ aren’t available to file your 2018 taxes. If you used one of these forms in the past, you will now file Form 1040.

*Due date of return. File Form 1040 by April 15, 2019. If you live in Maine or Massachusetts, you have until April 17, 2019, because of the Patriots’ Day holiday in those states and the Emancipation Day holiday in the District of Columbia.

*Change in tax rates. For 2018, most tax rates have been reduced. The 2018 tax rates are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent.

*Standard deduction amount increased. For 2018, the standard deduction amount has been increased for all
filers. The amounts are:

• Single or Married filing separately—$12,000.
• Married filing jointly or Qualifying widow(er)—$24,000.
• Head of household—$18,000.

*Personal exemption suspended. For 2018, you can’t claim a personal exemption deduction for yourself, your spouse, or your dependents.

*Increased child tax credit and additional child tax credit.

For 2018, the maximum child tax credit has increased to $2,000 per qualifying child, of which $1,400 can be claimed for the additional child tax credit. In addition, the modified adjusted gross income threshold at
which the credit begins to phase out has increased to $200,000 ($400,000 if married filing jointly).

*New credit for other dependents. If you have a dependent, you may be able to claim the credit for other dependents. The credit is a nonrefundable credit of up to $500 for each eligible dependent who can’t be claimed for the child tax credit. Social security number (SSN) required for child tax credit. Your child must have an SSN valid for employment issued before the due date of your 2018 return (including extensions) to be claimed as a qualifying child for the child tax credit or additional child tax credit. If your child doesn’t qualify you for the child tax credit but has a taxpayer identification number issued on or before the due date of your 2018 return (including extensions), you may be able to claim the new credit for other dependents for that child.

*Qualified business income deduction. Beginning in 2018, you may be able to deduct up to 20 percent of your qualified business income from your qualified trade or business, plus 20 percent of your qualified REIT dividends and qualified PTP income. The deduction can be taken in addition to your standard deduction or
itemized deductions.

*Changes to itemized deductions.

For 2018, there have been changes to the itemized deductions that can be claimed on Schedule A.

• Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately).

• You can no longer deduct job-related expenses or other miscellaneous itemized deductions that were subject to the two percent-of-adjusted-gross-income floor.

*Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount is increased to
$70,300 ($109,400 if married filing jointly or qualifying widow(er); $54,700 if married filing separately). The income levels at which the AMT exemption begins to phase out has increased to $500,000 ($1,000,000 if married filing jointly or qualifying widow(er)).

IRS Forms 1099 Are Coming: Pay Attention To What You Receive

FROM FORBES.COM

IRS Form 1099 season is here. Some people can't wait for those annoying little tax reports to come in the mail. They remind you that you earned interest, received a consulting fee, or were paid some other kind of income. There are many varieties, including 1099-INT for interest, 1099-DIV for dividends, 1099-G for tax refunds, 1099-R for pensions and 1099-MISC for miscellaneous income. These forms are sent by payers to you and the IRS. But if you don't receive one, should you ask? Asking for one can be a mistake. If your records are not good and you do not know what payments you have received, you may actually look forward to these forms. Yet you are better off in most cases not asking for one if it doesn’t show up. The most common is Form 1099-MISC, which can cover just about any kind of income. Consulting income, or non-employee compensation is a big category for 1099-MISC. In fact, apart from wages, whatever you were paid in 2018, is likely to be reported on a Form 1099. Companies big and small churn them out.

If you’re in business–even as a sole proprietor–you also may need to issue them. Each Form 1099 is matched to your Social Security number, so the IRS can easily spew out a tax bill if you fail to report one. In fact, you’re almost guaranteed an audit or at least a tax notice if you fail to report a Form 1099. Even if an issuer has your old address, the information will be reported to the IRS (and your state tax authority) based on your Social Security number. Make sure payers have your correct address so you get a copy. Update your address directly with payers, and put in a forwarding order at the U.S. Post Office. You’ll want to see any forms the IRS sees. It’s also a good idea to file an IRS change of address Form 8822. The IRS explains why at Topic 157 – Change of Address–How to Notify IRS.

Like Forms W-2, Forms 1099 are supposed to be mailed out by January 31st. You need a Form W-2 to file with your return, but do you really need a Form 1099? No. In contrast to Forms W-2, you don’t file Forms 1099 with your return. Although most Forms 1099 arrive in January, some companies issue the forms throughout the year when they issue checks. Whenever the forms come, don’t ignore them. Each form includes your Social Security number. If you don’t include the reported item on your tax return, bells go off at the IRS.

However, if you don’t receive a Form 1099 you expect, you might not want to ask for it. Just report the income. Reporting extra income that doesn’t match a Form 1099 is not a problem. The IRS does not consider that a mismatch. Only the reverse is a problem. One possible exception? The IRS suggests that if you don’t receive a Form 1099-R, you should ask. But I'm not sure I would ask about most Forms 1099, including the common Form 1099-MISC. Why?

If you call or write the payer asking for a Form 1099, the payer may issue it incorrectly. Alternatively, you may end up with two forms, one issued in the ordinary course (even if you never received it), and one issued because you asked for it. The IRS computer might end up thinking you had twice the income you really did. You can always ask the IRS for a transcript that should show all Forms 1099 issued on your account. But you don't really need most Forms 1099. If you know about the income, just report it.

Seven Tax Deductions You Can Take Even If You Don't Itemize

This year, filing your returns may prove a little more complex than in years past due to the many changes brought about by the Tax Cuts and Jobs Act of 2017 (TCJA). Consider starting a little earlier this year to make sure you understand which tax deductions and credits have been limited or eliminated and which adjustments to income you can still take, even if you don’t itemize. The sheer number of changes make a really strong case for working with a professional tax preparer or investing in tax preparation software from one of the leading providers, some of which offer one-on-one reviews and/or advice from credentialed tax professionals. If your adjusted gross income was $66,000 or less in 2018, you can access free tax software to prepare and e-fi­le your tax return thanks to a public–private partnership between the IRS and well-known tax software providers. Visit IRS.gov/FreeFile to learn more.

In addition to permanently reducing the corporate tax rate from 35% to 21%, changes under the TCJA mean that most individual taxpayers will also receive tax benefits, including lower marginal tax rates, and a reduction in the top tax rate for the wealthiest Americans from 39.6% down to 37%. However, all of the individual tax breaks are scheduled to expire at the end of 2025 unless Congress passes legislation to extend them. In addition, Forms 1040EZ and 1040A have been eliminated altogether. All taxpayers are now required to file using Form 1040.



Should you itemize or take the standard deduction? 

This is among the most common questions taxpayers are asking as they prepare to file their 2018 returns. The new tax law increased the standard deduction to $12,000 for individuals and $24,000 a year for married couples filing jointly. This dramatically changes things for the majority of the population. Let’s say you can deduct $8,000 for mortgage interest, $8,000 for state and local taxes, and $6,000 for charitable giving. That’s a total of $22,000, or $2,000 lower than the new standard deduction. In that case it makes sense to take the standard deduction instead of itemizing.
The significant increase in the standard deduction has also substantially raised the income required for filing a tax return. As a result, a larger number of taxpayers may find they don’t need to file a return at all. For individual filing thresholds (and the many exceptions to the rule), visit IRS.gov.

 Most high net worth households, especially those choosing to “bunch” charitable deductions into a given tax year, will want to continue to itemize. Until 2017, itemized deductions were phased out for high income taxpayers. Under the new tax law, the phaseout has been eliminated. And since most of the deductions available to self-employed business owners, such as business expenses, retirement plan contributions, a portion of self-employment taxes and healthcare premiums remain intact under the new tax law, it makes sense for those individuals to itemize as well. In addition, certain business owners may be able to deduct up to 20% of qualified business income from their qualified trade or business, plus 20% of their qualified real estate investment trust dividends, and qualified publicly traded partnership income.

While the new tax law is lengthy and complex, with many deductions limited or eliminated altogether, certain “above the line” deductions or adjustments to income are still available to taxpayers whether you itemize or take the standard deduction when filing your 2018 tax return, including the following:

1. Traditional IRAs. If you or your spouse is eligible to contribute to a traditional individual retirement account (IRA)you can trim your tax bill up to the amount of your contribution. IRA contribution limits for tax-year 2018 are $5,500 ($6,500 if you’re 50 or older) but must be made no later than April 15, 2019. If you or your spouse are covered by a retirement plan at work, the amount you may deduct may be limited. Consult your tax preparer or IRS.gov for more on IRA deduction limits.
2. If you’re funding a health savings account (HSA) in conjunction with a high-deductible health insurance plan, you can deduct contributions to your HSA, assuming you made them with after-tax money. If you contributed to the HSA through payroll deduction on the job, the deduction is not allowed as it would result in double-dipping.
3. If you paid an early withdrawal penalty on a bank certificate of deposit, you can deduct the full fee as an adjustment to income.
4. Student-loan interest. You may deduct up to $2,500 in student loan interest for you, your spouse or a dependent on your 2018 return if your modified adjusted gross income is less than $65,000 (single taxpayers) or $135,000 (married filing jointly). The deduction is phased out above those levels until it disappears completely for single taxpayers earning more than $80,000 and married couples earning more than $165,000. 
5. The Educator Expense Deduction allows K-12 educators to write off up to $250 each year for education-related supplies and expenses (receipts are required) if they log at least 900 hours a year on the job. The deduction does not apply to home schoolers.
6. Alimony paid to a former spouse is deductible for divorce agreements signed before December 31, 2018. Monetary payments must be clearly spelled out in your divorce agreement and you’re required to report your ex-spouse’s Social Security number, so the IRS can verify that your former spouse reports the same amount as taxable income. (Child support is not deductible under the new tax law.)
7. Moving expenses. The deduction for job-related moving expenses was eliminated with the exception of applicable expenses for eligible military personnel changing duty stations.

2019 Tax Forms: When Should I Expect to Get Them?

Most people probably aren't in a big hurry to get their taxes done long before this year's April 15 deadline. But that's not necessarily true if you're expecting to get a big refund. In that case, the sooner you file, the sooner you can get your money back from the IRS.

Tax filing season typically starts in late January, but even then, most people don't have all the forms they need in order to prepare their tax returns correctly. To make sure you've gotten all of your income and deductions correct, it's important to have the various tax information forms that your employer, financial institutions, and others provide. Here's a calendar of when you can expect to get the forms you need to get your refund headed your way.

W-2 forms: Jan. 31

The key form that nearly every taxpayer needs is the W-2 form. This is the form employers are required to give you that contain your gross income and taxable income after taking out work-related deductions. It also tells you how much money you had withheld from paychecks to cover federal and state income tax, which you'll need in order to calculate the amount of your refund.
You can also use the information on Form W-2 to find out how much money you spent on various tax-favored benefits, including employer-sponsored retirement plan contributions, employer-provided health insurance, flexible spending plans, and other similar tax breaks. If you haven't gotten your W-2 by Jan. 31, then you should go to your employer right away to find out if there's been a mistake.

Most 1098 and 1099 forms: Jan. 31

The deadline for most of the forms that you'll get from various financial institutions is also Jan. 31. That includes banks reporting interest income on Form 1099-INT, stocks and brokerage companies reporting dividend income on Form 1099-DIV, taxable withdrawals from retirement plans on Form 1099-R, and mortgage lenders reporting deductible mortgage interest and fees on Form 1098.
In addition, if you work not as an employee but as an independent contractor or are self-employed, then the payments you receive from your clients generally get reported on Form 1099-MISC. Jan. 31 is the deadline for that form as well.

Form 1099-B and some similar forms: Feb. 15

For simple investment calculations like interest and dividends, 31 days is more than enough to expect financial institutions to get information gathered. But for other information, it takes more time. For instance, in reporting sales of stocks and other investments on Form 1099-B, brokers have to analyze holding periods, calculate basis and sales proceeds, and determine an estimate of capital gain or loss for use on your tax return.
To acknowledge that need, the IRS gives brokers until Feb. 15 to provide Form 1099-B to their customers. In addition, an extended mid-February deadline applies to Form 1099-S for reporting real estate sales information and various 1099-MISC returns for items other than compensation for services.

Schedule K-1s: March 15 or April 15

If you've invested in a business entity that's in the form of a partnership, limited liability company, or other association electing to be taxed as a partnership, then you'll get key tax info on Schedule K-1. That's also the case if you're a partner in a professional business like a medical practice or law firm that's organized using these entities.
The deadlines vary depending on the size of the entity. A partnership that qualifies as what's known as an electing large partnership needs to provide a K-1 by March 15. For others, April 15 is the deadline. For the most part, that requires those expecting K-1s to file for extensions -- and makes it impossible to file early in order to get a refund.

What to do if you don't get your tax forms on time

The first thing to do if these deadlines pass without getting a form you expected is to contact your employer or financial institution. Because there are potential IRS penalties involved for those reporting entities, you shouldn't have to wait long to get the answers you want.

Conversely, don't assume that just because you didn't get a tax form that you don't have to report income you know about. The IRS has multiple ways to get tax info, and if your numbers don't match with what they have on file, then you could get audited and owe extra interest and penalties.
Anyone getting a refund wants to file as soon as they can, but it doesn't make sense to file without all the information you need. By knowing these deadlines, you'll be in a better position to get your refund quickly without any extra hassles.

Tough income tax filing season ahead? Tips to make it easier

The new tax law, and in particular a new deduction aimed at small business owners, is making this income tax filing season more complicated than usual.

The deduction aimed at giving tax breaks to sole proprietors, partners and owners of S corporations allows many of them to deduct 20 percent of what’s called qualified business income. But which business owners can claim the deduction, and how much they can claim, involves a lot of interpretation and complex calculations, tax professional say.

Some tips for making this filing season a little easier:

- Get on your CPA’s calendar soon. Tax pros always advise clients to see them early in tax season, but it’s even more important to do so this year. I advise business owners to have those meetings by the end of February. Even if owners don’t have all the necessary documents, they should meet with tax advisers to get a sense of where they stand.  If documents like 1099s are still outstanding when returns are due, it’s time to get an extension of the filing deadline.

Owners should be sure their records are in order before they give them to their advisers. The more time a preparer spends trying to sort out all the numbers, the more expensive it will be for an owner.

- Expect to do more of the work this year as your tax pro determines whether you can claim the deduction. They’re used to giving us the information and letting us figure it out. Clients are going to have to be very involved as well.

- If you’re a do-it-yourselfer and don’t use a paid preparer to compile your return, don’t be in a rush to file. The creators of tax preparation software are also still figuring things out and may amend their products before the filing deadlines. That will change the calculations for some owners. Owners who do the work themselves should consider asking a tax pro to look over the return - the investment in their fee may save you from costly mistakes.

Small business tax deduction has CPAs scratching their heads

FROM THEREPUBLIC.COM

Millions of small business owners will be in uncharted waters this tax season as they try to determine if they qualify for a deduction that could exempt one-fifth of their income from taxes.

Five months after the IRS issued guidelines to help business owners and tax advisers understand how the complex deduction works, accountants and tax attorneys still have questions. Even those who have attended seminars and workshops about the new law have come away scratching their heads, especially about a section that bars service providers like doctors, lawyers and consultants from claiming the deduction. Some of these company owners have businesses that don’t easily fit into the IRS guidelines or proposed regulations the agency has also issued.

There’s a lot of conflicting advice out there. It’s going to be like the Wild West.

THE BASICS

The deduction is aimed at giving tax breaks to sole proprietors, partners and owners of S corporations; these businesses are known as pass-throughs because company income “passes through” to owners’ 1040 forms, where it is reported to the IRS. Before the law was enacted, many of these owners couldn’t get the more favorable tax treatment enjoyed by traditional corporations, those known as C corporations.

The new law allows many owners to deduct 20 percent of what’s called qualified business income. They can get the full deduction as long as their taxable income doesn’t exceed $157,500 for an individual and $315,000 for a married couple filing jointly. But taxable income includes owners’ and spouses’ earnings from outside the business — for example, being employed in a different field or industry — and earnings from investments.

If taxable income is above the $157,500 or $315,000 threshold, owners may get a partial deduction. There are two critical factors that can limit the size of the break. The first involves the company’s W-2 wages, or how much it pays employees, and the value of some of its property; complex calculations go into assessing the impact of wages and property on the deduction.

The second factor affects owners who are in what’s called a specified service trade or business — for example, health providers, attorneys, accountants or consultants. They have no deduction if their taxable income is more than $207,500 for an individual or $415,000 for a married couple.

The IRS spells out the conditions for taking the deduction on its website. Visit https://bit.ly/2RbxOtc .

MORE THAN ONE ACTIVITY OR BUSINESS?

Owners whose businesses involve a variety of activities may find that income from some qualify for the deduction while others don’t. An optometrist who treats patients may not be able to claim the deduction for that work. But the same optometrist who also sells eyeglasses and contact lenses may be able to use the deduction for that income.

Another example: A graphic designer who consults with clients but also creates websites. You’re consulting, but also selling a product.

There might be some unpleasant surprises when owners in such situations get to their CPA’s offices. The new law requires separate records for the different types of work.

They might find their books may not be in good shape for tax reform — they may not show the data CPAs will need to know. In that case, either the owner has to go back and change the books, or pay extra to have their tax advisers do the work.

Owners who have more than one business with employees may be able to aggregate, or combine the qualified business income of the companies, and lower the impact of W-2 wages on the deduction. But the businesses must be in a related industry.

If you are a real estate developer and somebody that owns real estate as investment property, you probably can aggregate. But someone who owns a cleaning service and an auto servicing shop wouldn’t be able to aggregate their income.

QUESTIONS AWAITING ANSWERS

The guidelines the IRS issued in August aren’t set in stone although the agency said taxpayers could rely on them in compiling their 2018 returns. The agency has issued proposed regulations, and tax professionals have already asked the IRS to clarify a number of issues, including which service providers can claim the deduction. For example, the New York State Bar Association, which asked the IRS for multiple clarifications, said many taxpayers, including those who rent a small number of real estate properties, may be uncertain about whether the deduction applies to them.

Many don’t like to get extensions of the filing deadlines for the returns. But the uncertainty about the new law is a good reason to get an extra six months to complete and submit returns.

It may be wise to do so with more clarity coming from Congress or Treasury. With the government shutdown, and the political atmosphere surrounding tax policy, it may take well into the summer to gain any clarity at all.