2018 HSA Contribution Deduction Limit Restored to Original Level of $6,900
Before the Tax Cuts and Jobs Act was passed, the 2018 limit on deductible HSA contributions for account owners with family coverage was scheduled to be $6,900. However, the Tax Cuts and Jobs Act included changes to how annual inflation adjustments are calculated for certain tax deductions. To account for this, the IRS reduced the maximum deductible HSA contribution for 2018 to $6,850. This change was made by the IRS in March of 2018. After receiving negative feedback from employers that many HSA owners relied on the original limit of $6,900 in making contributions for the beginning of 2018, the IRS restored the limit to the original amount of $6,900.
Depreciation Rules for Business Vehicles Becomes More Favorable Under New Tax Law
Buyers of new or used vehicles used for business and placed in service in 2018 qualify for more advantageous deprecation deduction limits than in past. The limit on first year depreciation for business vehicles under bonus depreciation rules is $18,000. If the vehicle purchased is used 100% for business and weighs more than 6,000 pounds, the cost of the vehicle is 100% deductible in the year of purchase.
