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How would homeowners fare under the proposed tax law?

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The Tax Cuts and Jobs Act would make several changes. For example, it retains the mortgage interest deduction (subject to a $1 million cap) for mortgages that already exist on Nov. 2, 2017, as well as for those who entered into a binding written contract before that date. However, for newly purchased homes, the deduction would be limited to $500,000 and taxpayers would be limited to one qualified residence. The bill would also retain the property tax deduction, subject to a $10,000 maximum.

Proposed health care bill clears two House committees

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Following nearly 18 hours of debate, the American Health Care Act (AHCA) was approved by the Ways and Means Committee on March 9 by a 23-16 party line vote. The House Energy and Commerce Committee also approved the bill, which repeals and replaces the Affordable Care Act (ACA), although many ACA provisions will remain under the AHCA. Both parts of the legislation will now go to the House Budget Committee, which is expected to assemble the final bill that will then be voted on by the full chamber.

No deduction for donated aircraft without contemporaneous written acknowledgment

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The U.S. Tax Court held that a taxpayer wasn’t entitled to a charitable deduction for his alleged gift of his interest in an aircraft. He didn’t claim the deduction on his original tax return but rather on an amended return filed nearly six years after the donation. And the documentation attached to his amended return 1) wasn’t a “contemporaneous written acknowledgment” as required by the tax code and 2) didn’t satisfy the statute’s strict substantiation requirements. (148 TC No. 5)