Good news is on the horizon for the self-employed: The deductibility of health-insurance costs--which are at a marginal 40 percent for 1997--will gradually increase over the next 10 years, and will be 100-percent deductible by the year 2007. These changes are brought to you courtesy of the Taxpayer Relief Act of 1997, which President Clinton signed into law on August 5.
"This is the first major tax cut in 16 years, but the new tax act is extremely complex, with numerous technical and complicated provisions," says Ed Slott, a CPA in Rockville Centre, New York, and author of Your Tax Questions Answered (Plymouth Press, $9.95, 800-350-1007), which answers 171 of the most commonly asked tax questions.
But wait, there's more: The health-insurance deductibility is only one of the changes to be implemented from the new tax law. For a three-page newsletter summarizing the other rulings--including information about changes on electronic tax deposits, estimated tax payments and the home-office qualification--send a SASE to E. Slott & Co. CPAs, 100 Merrick Rd., #200 E., Rockville Centre, NY 11570.