Except for three provisions, all of the new tax changes included in the recently passed Tax Cuts and Jobs Act go into effect beginning in 2018 or beyond. The changes applicable for 2017 federal returns are:
• The adjusted gross income threshold for medical expenses on Schedule A will be 7.5% for all taxpayers for 2017 and 2018.
• 100% of bonus depreciation is eligible for qualifying assets purchased after September 27, 2017.
• The home mortgage interest deduction is limited to no more than $750,000 of principal residence acquisition indebtedness for loans incurred beginning after December 14, 2017. The limit is $1,000,000 for loans incurred before December 15, 2017.
The IRS released new tax tables to reflect the increase in the standard deduction, the repeal of personal exemptions, new tax rates and brackets which can be implemented now or no later than February 15.