With a new tax plan going into effect under President Trump, many people have questions about what they can deduct, what bracket they are in and what it means for their income and property taxes.
“I just got finished calling over 300 of my clients,” said David Gorsich, owner of Consultax in Kearny Mesa. "Most people feel like their victims of the system."
The new tax plan is so complex that many accountants around the country are scrambling to fully understand it.
"The changes are so dramatic that I did my best to alert the affected clients," said Gorsich.
The new laws will not be applied until 2018 taxes, which means citizens won’t have to fret about these changes when they start filing their 2017 tax returns in a month from now.
Californians will be affected by the new rules for state and local deductions. Before, there was not a cap on this. Now, you're only allowed to deduct up to $10,000.
"One of the clients I talked to has over $20,000 of job expenses between his truck and tools in a high end construction business," said Gorsich. "Those deductions will evaporate."
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But Gorsich added many people will actually pay less taxes for 2018.
"The tax rates went down," Gorsich said. "The lion's share of Americans will see a decline in their taxes."
Starting next year, the corporate tax rate has been cut from 35 percent to 21 percent.
