Monday, January 8, 2018


+ For those of you who are members of NATP, I recently got the word from Cindy Hockenberry -

The research team is ready and able to answer any question regarding the new tax law. Questions will be billed as research questions.”

+ I submitted my questions about the deduction for interest under the GOP Tax Act and learned, despite what I had thought, that the itemized deduction for investment interest is NOT gone.  It has survived the Act.  The NATP Research Department told me -

Investment interest will continue to be reported on Form 4952 and carried to Schedule A, line 14, part of the interest you paid section.”

+ The GOP Tax Act totally did away with the itemized deduction for home equity interest.  There is no “grandfathering” of existing home equity debt.  This makes it truly vital for all homeowners with both new and existing mortgages to keep separate track of acquisition and home equity debt going back to day one of the purchase of the property

After having some items confirmed by the NATP Research Department I am just about ready to “go to press” with my revised “Mortgage Interest Guide” and a special report on deducting mortgage interest under the GOP Tax Act for my clients.  Both of these include my worksheets for keeping separate track of acquisition and home equity debt and a detailed example. 

Reprint rights to both of these items will be available for fellow tax professionals to give to clients for ONLY $24.95.  Members of NATP receive a 25% discount – so the cost is only $18.70.

I will email you a pdf copy of these reports for your review if you email me t with SAMPLE MORTGAGE REPORTS in the “subject line”.

The reports will be delivered as a “word doc” email attachment.  The signed reprint rights agreement will be sent via postal mail.  Send your check or money order, payable to TAXES AND ACCOUNTING, INC, and your email AND postal address (and membership number if a NATP member) to –

HAWLEY PA 18428 

+ The new IRC Section 199a Qualified Business Income Deduction is truly a convoluted mucking fess that adds much unnecessary complexity to the Tax Code.  Tony Nitti of FORBES.COM has tried to explain this new deduction here and here.

I have already received an email from a client asking if he should change from being an employee to an independent contractor to take advantage of this new loophole.  While this is a valid question, although one certainly cannot simply go from being an employee to being an independent contractor by just saying “make it so” and changing the method of payment, and one that needs to be answered now, I have neither the time, nor the desire, to properly “digest” this new deduction now, considering that I need to get ready for the upcoming tax filing season.

A request for my fellow tax professionals – I expect the IRS will no doubt create a detailed worksheet to make sense of the convoluted mess and properly calculate this deduction when it gets around to writing the instructions for the 2018 tax returns – much later this year.  But we need such a worksheet now.  Does anyone have, or has anyone seen or heard of, a Section 199a Deduction Worksheet that is available to download NOW, either free or at a minor charge?  If so, please email me at with SECTION 199a WORKSHEET in the “subject line” with the information. 

I will share the link or links to acquire such a worksheet in a subsequent post here.


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