Trusts Calendar Year Filers -   April 17, 2022 or extended until October 15, 2022

Fiscal Year Filers -            

15th day of the fourth month after the close of the fiscal year or extended until the 15th day of the tenth month after the close of the fiscal year.

The biggest question on everyone’s mind in our industry are the tax law changes of 2022.  Public opinion is that it will save taxes for most people, but will it?

The bad news:  Especially in high income tax and property tax states, the itemized deduction for state taxes (includes property tax) is limited to $10,000.  While the standard deduction has increased, for most California this particular change is going
to hurt.  If you’re thinking of purchasing a home or refinancing, the mortgage interest deduction is limited to mortgages with average balances of $750k during the year.  If you’re mortgage is higher than $750k, the interest deduction is limited.

The good news:  Don’t panic just yet, as the tax brackets have changed for the better also, so depending on where your income falls you might fare just fine.  

If you have pass through income from partnerships, S-Corps, rental properties etc up to 20% of the income may not be taxable.  Charitable contribution deductions remain unchanged and the medical expense threshold has dropped from 10% of your AGI down to 7.5%.

How will your tax situation turnout for 2022?  With all tax situations the
answer is…IT DEPENDS!  Unfortunately there is no one answer as everyone’s
tax scenario is a little different.  If you’re concerned we highly suggest contacting
us for tax planning during the year so there are no surprises, good or bad, in April!