Essential Tax Advice

At Danile & Danile of Somerset, New Jersey and Leland, North Carolina we keep you informed about tax and financial news that can save you money.  Keep an eye on this page for the latest tips and tax news.

Tax News

  • The dependency exemption has been eliminated*, however
  • The standard deduction for 2019 has been raised to $12,200 (single), $18,350 (head of household) and $24,400 (married, filing jointly) and will continue to be indexed for inflation*
  • The deduction that taxpayers can claim for state and local income, sales and property taxes is limited to a combined total of $10,000 ($5,000 if married, filing separately) *
  • Medical expenses over 10% of adjusted gross income can be deducted for 2019 if you itemize
  • Interest on home equity loans and lines of credit is not deductible unless used to buy, build or substantially improve the home that secures the loan. If refinancing, the loan must be used to buy, build or substantially improve the main home or second home. Interest is not deductible if it is used to pay personal living expenses such as credit card debt. The loan must be secured by the main home or second home, and not exceed the cost of the home*
  • Mortgage Interest on up to a total of $750,000 ($375,000 married, filing separately) of qualified residence loans for a first and second home (for debt incurred after December 15, 2017) is deductible*
  • Miscellaneous itemized deductions subject to the 2% adjusted gross income floor are repealed*
  • Estate, Gift & Generation-skipping basic exclusion amount is $11,580,000 for 2020 (amounts are indexed for inflation)*
  • The annual gift exclusion amount for 2019 and 2020 is $15,000
  • Pass-through entities can qualify for a new Special 20% deduction – this is not as straight forward as it sounds, though it can benefit Partnerships, S Corporations, Sole Proprietors, LLCs and other qualifying entities*
  • The Individual mandate under the Affordable Care Act falls to zero ($0) in 2019 under the federal Tax Cuts and Jobs Act, however under the law signed by Gov. Murphy, all New Jersey taxpayers and their dependents (if they are all considered applicable individuals) must have minimum essential coverage for every month beginning after Dec. 31, 2018
  • Finally, be wary of fraudsters: the IRS will never call or email you about your taxes

*Expires after 2025

Estates & Trusts

  • NJ repealed the Estate Tax , however, the Inheritance Tax still remains in effect
  • NC has no estate or inheritance tax
  • NC has repealed its gift tax, however, you may still owe gift taxes at the federal level

Tax Tips

  • Go online to access any tax documents that you may not receive in the mail. Your broker, bank and mortgage institution should provide you with a year-end statement containing all relevant information for completing your tax return.
  • Be aware of scams from people claiming to be from the IRS or working for the IRS, either by telephone or email and call us immediately. The IRS will never contact you by email or telephone.

Contact us at (732) 247-2960 for both Somerset, New Jersey and Leland, North Carolina for tax advice from seasoned professionals.