2018 Tax Updates: Deductions, Alimony, and Gifting

Standard Deduction:

The standard deduction has increased; Single standard deduction is now $12,000, Married $24,000.

Alimony:

“The tax treatment of alimony (deductible by payer and taxable income of recipient) will be changed for divorce agreements after December 31, 2018. For agreements reached after this year, payments will not be deductible by the payer or included in taxable income of the recipient. Couples in the process of divorcing need to consider this change.”

Annual gifting:

“You may give your children and others up to $15,000 each in 2018 without any gift tax consequences. This annual exclusion is calculated on a per donee basis and no carryover is allowed for the unused exclusion. Consider making year-end gifts to fully utilize this year’s annual exclusion.”

Gift taxes:

“The annual exclusion for gifts per donee remains $15,000 for 2019.”

Dean Dorton Newsletter Winter 2018

“Accounting is the language of business.”

Warren Buffett

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