AAO Board of Trustees and Council on Government Affairs. Analysis of New Tax Reform Law
|
|
- Linda Harris
- 5 years ago
- Views:
Transcription
1 Memorandum To: From: AAO Board of Trustees and Council on Government Affairs Arnold & Porter Kaye Scholer Date: December 22, 2017 Re: Analysis of New Tax Reform Law This memo is intended for use by the AAO Board of Trustees and the AAO Committee on Government Affairs for educating AAO members about the details of the new tax reform law. As the AAO s federal lobbying team, Arnold &Porter Kaye Scholer does not represent individual orthodontists, and the information below does not constitute the firm providing any individual member of the AAO with legal advice on how the new tax law affects their personal financial situation. We strongly recommend that all AAO members be in contact as soon as possible with their own accountant and legal counsel about the new tax law. It is possible some changes in the law create conditions where individuals and partnerships/corporations have incentive to accelerate select financial decisions into the final days of 2017 Examples might include, but not be limited to, prepaying Q state taxes (due January 15, 2018) before the end of the year, prepaying local 2018 property taxes if allowed, and accelerating some planned charitable giving in 2018 to take advantage of the deduction versus 2017 s higher tax rate. We recognize that this is the most comprehensive tax law rewrite that has occurred during the professional careers of most AAO members. The short time frame for Congressional debate and passage of this law has created confusion on many levels, and it will take some time for all the answers to emerge. For those reasons, we again encourage you to make time to talk with your tax preparer about the impact of the new law on your personal situation. Legislative Background On Wednesday, December 20, the House passed the Tax Cuts and Jobs Act (TCJA) by a vote of 224 to 201. The Senate passed the legislation on a party-line vote of 51 to 48 late Tuesday night after the Senate parliamentarian found that a few minor provisions tucked Arnold & Porter Kaye Scholer LLP 601 Massachusetts Ave., NW Washington, DC
2 into the bill violated Senate rules. As a result, the House was required to vote again on the bill that emerged out of the Senate chamber. On December 22, President Donald Trump signed the bill into law. Provided at the bottom of this memo is a chart showing all of the major legal changes in the TCJA. This memo provides an analysis of the TCJA s changes to the treatment of certain business income earned by non-corporate taxpayers, including sole proprietors, partners, S corporation shareholders, and trusts and estates. The TCJA makes significant changes to the business income tax system, which taxes ordinary income earned by partners, S corporation shareholders, and sole proprietors at individual income tax rates. Again, we have included a chart that tracks many of the key provisions of the final bill relevant to AAO members. Pass-Through Taxation With respect to the treatment of qualified business income, the TCJA generally followed the Senate version with a few significant modifications, which we summarize below. In addition, we also have provided two hypothetical examples to help AAO s member organizations conceptualize these new rules. The TCJA provides for a 20 percent deduction (against taxable income) of (1) domestic qualified business income (which does not include wages or guaranteed payments, among other categories of income), with respect to a qualified trade or business, from a partnership, S corporation, or sole proprietorship (subject to limitations described below), and (2) aggregate qualified REIT dividends, qualified cooperative dividends and qualified publicly traded partnership income. Generally, for taxpayers with taxable income in excess of an annual threshold amount (starting at $157,500 for single filers, and $315,000 for joint filers), the 20 percent deduction is limited by the greater of: (a) 50 percent of W-2 wages, or (b) 25 percent of W-2 wages, plus 2.5 percent of the unadjusted basis (as determined immediately after acquisition) of tangible depreciable property of the qualified business. For this purpose, W-2 wages is defined as the sum of wages subject to wage withholding, elective deferrals and deferred compensation paid by the partnership, S corporation, or sole proprietorship during the tax year. Property qualifying for the 2.5 percent limit is subject to several requirements not discussed in detail here. Please note that AAO member organizations who are organized as partnerships or S corporations are - 2 -
3 subject to special rules for purposes of determining certain limitations with respect to their partners and shareholders, respectively. A taxpayer who is involved in a specified service trade or business and whose taxable income exceeds the applicable threshold amounts referenced above generally will be precluded from claiming the 20 percent deduction with respect to income derived by that specified service trade or business. AAO s member organizations are likely to fall within the TCJA s definition of a specified service trade or business. Therefore, if an individual, partner, or shareholder of an AAO member organization earns more than $207,500 of taxable income as a single filer or $415,000 as a joint filer (the fully phased out threshold amounts for this purpose), they generally will not be able to claim the 20 percent deduction with respect to their allocable income from such business. AAO Member Examples on Pass-Through Taxation Below are two hypothetical examples to illustrate, in a general manner, how the TCJA s qualified business income provision would work. 1. In 2018, an individual provides dental care to patients as a sole proprietor. The individual earns $150,000 of taxable income from all income sources. All of this amount is taxed as ordinary income. Although the individual s business falls within the TCJA s definition of a specified service trade or business, the individual s income for 2018 is below the threshold amount for a single filer. Thus, the individual would be eligible to claim the 20 percent deduction against taxable income for Furthermore, because the individual s 2018 income is below the threshold amount, the individual is not subject to any limitations on the 20 percent deduction. 2. In 2018, an individual is a partner in a partnership that provides dental care to patients. The partner earns $500,000 annually from all income sources. All of this amount is taxed as ordinary income. The partnership s business falls within the TCJA s definition of a specified service trade or business and the partner s 2018 income exceeds the threshold amount for a single filer. Thus, the partner is ineligible to claim the 20 percent deduction for
4 Tax Cuts and Jobs Act Summary Chart Provision Old Law New Law Sunset of Individual Tax Changes Individual Provisions After 2025, almost all of the changes made with respect to the individual income tax system would end and the tax rules would revert to the law that existed prior to January 1, Therefore, the provisions that are added or repealed in the individual tax code are temporary. Individual Rates Standard Rate Single Joint 10% $0 - $9,525 $0 - $19,050 15% $9,526 - $38,700 $19,051 - $77,400 25% $38,701- $93,700 $77,401 - $156,150 28% $93,701 - $195,450 $156,151 - $237, % $195, $424,950 $237,951 - $424,950 35% $424,951 - $426,700 $424,951 - $480, % $426,701 and over $480,051and over This would have been the tax bracket for 2018 under current law. Standard deduction: $6,500 for Single Filers $9,550 Head of Household $13,000 Married Filing Jointly Notably, if the provisions are indexed for inflation, they will continue to be indexed albeit by applying chained-cpi. Rate Single Joint 10% $0 - $9,525 $0 - $19,050 12% $9,526 - $38,700 $19,051 - $77,400 22% $38,701- $82,500 $77,401 - $165,000 24% $82,501 - $157,500 $165,001 - $315,000 32% $157, $200,000 $315,001 - $400,000 35% $200,001 - $500,000 $400,001 - $600,000 37% $500,001 and over $600,001 and over Roughly doubles the standard deduction: $12,000 Single Filers $18,000 Head of Household $24,000 Married Filing Jointly
5 Personal/ Dependent Exemption Individual Mandate Child Tax Credit Alternative Minimum Tax The current code also offers a $4,150 per-person standard deduction along with an additional standard deduction of $1,300 for the aged or blind ($1,600 if unmarried). $4,150 standard exemption per person, indexed for inflation. Imposes a penalty of $695 or 2.5 percent of income (with a deduction), whichever is higher, for those who do not have health insurance. Provides a partially refundable $1,000 child tax credit for the first two children, with a less generous additional child credit for third and subsequent children. Exemption amounts of $54,300 for single filers; $84,500 for married filers. Income threshold above which the Alternative Suspended for Repealed. Provides a partially refundable $2,000 credit per qualifying child under the age of 17. The refundable portion of the child tax credit requires a SSN and is capped at $1,400 (indexed for inflation). Phase out starts at $200,000 for single filers and $400,000 for joint filers. Provides $500 nonrefundable credit for qualifying dependents other than qualifying children. Difference between refundable and nonrefundable tax credits: Taxpayers subtract both refundable and nonrefundable credits from the taxes they owe. If a refundable credit exceeds the amount of taxes owed, the difference is paid as a refund. If a nonrefundable credit exceeds the amount of taxes owed, the excess is lost. Thus, more lower-income families will benefit as a result of the increase in the refundable portion of the credit to $1,400. Increases exemption amounts to $70,300 for single filers; $109,400 for married filers. Income threshold above which the Alternative Minimum Tax
6 Estate Tax Capital Gains & Dividends Carried interest State and Local Tax Medical Expense Mortgage Interest Minimum Tax exemption phases out is $120,700 for single filers; $160,900 for joint filers. Imposes an estate tax of $5 million indexed for inflation after In 2017, the estate tax exemption was approximately $5.5 million. Long-term capital gains and qualified dividends are taxed at special rates of 0, 15 and 20 percent, depending on the taxpayer s taxable income. ACA 3.8% net investment income tax remains unchanged. Allows individuals to fully deduct real estate, personal property, and either income or sales tax. Medical expense deduction if meeting floor of 10% of adjusted gross income. limited to $1 million in mortgage debt and $100,000 in equity debt. exemption phases out is increased to $500,000 for single filers; $1 million for joint filers. Doubles estate and gift tax exemption amount from $5 million to $10 million, indexed for inflation after In 2018, the estate tax exemption will be doubled from approximately $5.6 million to $11.2 million for single filers and $22 million for joint filers. Unchanged, but because the 37% tax bracket is increased to $500,001 for single filers and $600,001 for joint filers, more taxpayers qualify for the 15% rate. Please note that this change would end after If partnership interest is received in exchange for services, taxpayer must hold interest for at least 3 years to benefit from long-term capital gains rate with respect to the partnership interest. Allows state and local tax deduction of up to $10,000. Taxpayers have the ability to combine property plus choice of income or sales taxes up to the full amount of the $10,000 deduction. During tax years 2017 and 2018, the medical expense deduction s floor would be 7.5% of adjusted gross income. After 2018, the 10% adjusted gross income floor would be applicable. Reduces limit on deductible mortgage debt to $750,000 for new purchases and refinancing (principal residence or otherwise) entered into after December 15, Repeals deduction for interest paid on home equity debt, through December 31, Preserves deduction for second home.
7 Charitable Miscellaneous Expense Electric Vehicle Tax Credit Deductible as an itemized deduction up to 50% of income. Deductible as an itemized deduction up to 60% of income for tax years 2018 through Suspends through 2025 all miscellaneous itemized deductions subject to the 2% floor. No change. Corporate Tax Rate Corporate Alternative Minimum Tax Pass-Through Tax Rate Business Provisions A top marginal rate of 35% and a bubble rate of 39%. Reduced to 21% after % rate for a more broadly defined alternative definition of income. Pass-through income is taxed as ordinary income, subject to the individual s tax rate. Repealed. Would allow 20% deduction through 2025 for pass-through income (including trusts and estates), limited to the greater of (a) 50% of wage income with respect to the qualified business or trade or (b) the sum of 25% of wage income with respect to the qualified business or trade plus 2.5% of the unadjusted basis of all qualified property (which is determined immediately after an acquisition). Wage income is defined as the sum of wages subject to wage withholding, elective deferrals and deferred compensation paid by the partnership, S corporation, or sole proprietorship during the tax year. For trusts and estates, to calculate the apportionment between fiduciaries and beneficiaries of any wage income and unadjusted basis of any qualified property, rules similar to Section 199 would apply. The deduction does not apply to "specified service businesses," except for taxpayers whose taxable income does not exceed
8 $207,500 for individuals; $415,000 married. The benefit of the deduction is phased out for these taxpayers over a $50,000 range ($100,000 if joint return) for taxable income exceeding the $157,500 for individuals, and $315,000 if married filing jointly. Expensing for Certain Assets Net Operating Losses (NOL) Interest s Credit for Paid Family and Medical Leave Allows 50 percent bonus depreciation for short-lived capital investment placed into service before 2018; 40 percent for eligible property placed into service prior to 2019; 30 percent prior to Property placed in service is the point in time when an asset that can be depreciated is first placed in use. The date the asset is placed in service marks the beginning of the depreciation period. The proposal defines services businesses to include any trade or business activity involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation of skill of one or more of its employees. It does not include engineering or architecture trades or businesses. Full expensing for property placed in service after September 27, 2017, but begin to phase down the percent that may be expensed for property placed in service after Jan 1, 2023, by 20% every year. In 2023 expensing would be limited to 80%; 2024, 60%; 2025, 40%; 2026, 20%. Definition of qualified property is expanded to include used property. Eliminates NOL carrybacks while allowing indefinite NOL carryforwards, limited to 80% of the taxpayer s taxable income. Caps the deduction for net interest expense to 30% of earnings before interest, depreciation, amortization (EBITDA) for four years, and 30% of earnings before interest and taxes (EBIT) thereafter. Establishes a credit during a two-year period that would permit eligible employers allowing full-time employees at least two weeks annual paid family and medical leave to claim a business credit.
9 Charitable Contributions Education & Tax Exempt Provisions Deductible as an itemized deduction up to 50% of income. However, 20% and 30% limitations apply in some cases. Increases the limitation for cash contributions to public charities and certain private foundations from 50 to 60 percent for contributions made before College Athletic Seating Student Loan Discharges Income Exclusions related to Education - Qualified Tuition Reductions Income Exclusions related to Education - Allows taxpayers to deduct as a charitable contribution 80 percent of the amount paid for the right to purchase tickets for athletic events at a college or university stadium. Gross income generally includes the discharge of indebtedness of the taxpayer. Under an exception to this general rule, gross income does not include any amount from the forgiveness of certain student loans, provided that the forgiveness is contingent on the student s working for a certain period of time in certain professions for any of a broad class of employers. Private loans are not eligible for discharge. Repeals the charitable contribution substation exception for contributions reported by donee organization. Repeals the special rule allowing taxpayers to deduct as a charitable contribution 80 percent of the amount paid for the right to purchase tickets for athletic events at a college or university stadium. Excludes from gross income the discharge of student debt on account of death or total disability and modifies the gross income exclusion for amounts received under the National Health Service Corps loan repayment program or certain State loan repayment programs. Applies to discharges of loans after December 31, 2017 and through December 31, No change. No change.
10 Interest on U.S. Savings Bonds Income Exclusions related to Education - Employer- Provided Education Assistance Rollover Allowances for Qualified ABLE Programs No change. Allows for amounts from 529 accounts to be rolled over to an ABLE account without penalty, if the ABLE account is owned by the designated beneficiary of that 529 account, or a member of such designated beneficiary s family. This provision also is in the House bill. The provision would expire at the end of Increases the limitation to ABLE accounts (currently $14,000) for contributions made by the designated beneficiary of the ABLE account only. Would require that a designated beneficiary, or a person acting on behalf of the designated beneficiary, maintain adequate records to ensure that additional ABLE contributions do not exceed the lesser of the federal poverty line for a one-person household or the individual s compensation for that tax year. The designated beneficiary, or a person acting on the designated beneficiary s behalf would also be obligated to ensure compliance with other limitations. Allows a designated beneficiary of an ABLE account to claim the saver s credit for contributions made to his or her ABLE account.
11 Higher Education Tax Credits No change. Endowments Imposes a 1.4 percent excise tax on private colleges and universities that have (1) at least 500 students and (2) assets valued at a minimum of $500,000 per full-time student during the preceding tax year. Endowment assets that are formally held by organizations related to the university, and not merely those that are directly held by the university, also are subject to the tax. Moving Expenses Moving Expenses (Qualified) Research Expenditures Clarifies the provision applies only to assets held for the educational institution and to investment income that relates to assets held for the educational institution. An additional modification is made to only include those institutions for which more than 50 percent of the tuition-paying students are located in the U.S. Suspends the deduction for moving expenses through 2025, except for exclusions for certain in-kind moving and storage expenses for members of the Armed Forces and their spouse or dependents. Suspends the exclusion for qualified moving expense reimbursements through 2025, except for moving expenses of a member of the Armed Forces on active duty who moves pursuant to a military order. The conference bill adopts the Senate provision, which modified the House amendment. The House bill would have eliminated deductions for research or experimental expenditures, except for exploration expenditures (ore deposit or other minerals, including oil and gas), land or other property acquisition or improvement, and software development. Instead, it requires the expenditures to be capitalized and amortized over a 5-year period (15 years in the case of expenditures attributable to research conducted outside of
12 the United States). The Senate bill adopted the House provision with the following modifications. Senate amendment is treated as a change in the taxpayer s method of accounting for purposes of sec. 481, initiated by the taxpayer and made with the consent of the Secretary. The Senate amendment is applied on a cutoff basis to research or experimental expenditures paid or incurred after December 31, Additionally, senate amendment makes conforming changes to sections 41 and 280C. Capital Investment (179 Expensing) Allows Section 179 small business expensing with a cap of $500,000 and a phaseout beginning at $2 million. Small Business Provisions Increases limit to $1 million, with a phaseout beginning at $20 million in total qualified property placed in service. Also expands qualified Section 179 property to include depreciable tangible personal property used furnish lodging and improvements to nonresidential real property (like roofs, heating, ventilation, air-conditioning, fire protection and alarm systems). Cash Method of Accounting Businesses with less than $5 million in income may use the cash method of accounting. Shortens the depreciation recovery period of real property to 25 years. Increases the average gross receipts threshold for corporations and partnerships with corporate partners that are not allowed to use the cash method of accounting from $5 million to $25 million.
Tax Cuts and Jobs Act Passed by Congress
Tax Cuts and Jobs Act Passed by Congress On December 19 and 20, 2017, the House and Senate approved a final version of H.R. 1, the Tax Cuts and Jobs Act, renamed An Act to provide for reconcilation purusant
More informationTAX REFORM INDIVIDUALS
The following chart sets forth some of the provisions affecting individuals in H.R. 1, originally called the Tax Cuts and Jobs Act (the Act), as signed by President Donald Trump on December 22, 2017. This
More informationTAX REFORM INDIVIDUALS
The following chart sets forth some of the provisions affecting individuals in the Tax Reform Act of 2017 (the Act). This chart highlights only some of the key issues and is not intended to address all
More informationESTIMATED KANSAS IMPACT OF THE FEDERAL TAX CUTS AND JOBS ACT
ESTIMATED KANSAS IMPACT OF THE FEDERAL TAX CUTS AND JOBS ACT KANSAS DEPARTMENT OF REVENUE FEBRUARY 14, 2018 Summary... 2 Individual Tax Reform... 8 Tax Rate Reform... 8 Deduction for Qualified Business
More informationTAX CUTS AND JOBS ACT
TAX CUTS AND JOBS ACT Businesses Corporate tax rate will now be a flat 21% beginning January 1, 2018. Corporate alternative minimum tax has been repealed. Effective for tax years beginning after December
More informationTax Cuts and Jobs Act 2017 HR 1
Tax Cuts and Jobs Act 2017 HR 1 The Tax Cuts and Jobs Act is arguably the most significant change to the Internal Revenue Code in decades, the law reduces tax rates for individuals and corporations and
More informationTAX UPDATE TAX CUTS & JOBS ACT (2018) Add l Elderly & Blind Joint & Surviving Spouse: $1,300
TAX UPDATE 2019 This table compares the predominate changes made by the Tax Cuts and Jobs Act of 2019 to the tax law as it was during 2017 for individuals and small businesses. Exemptions 2017 TAX CUTS
More informationThe Tax Cuts and Jobs Act of 2017
The Tax Cuts and Jobs Act of 2017 is the most comprehensive revision to the Internal Revenue Code Since 1986. This new Tax Act reduces tax rates for individuals and corporations, repeals exemptions, eliminates
More informationIntegrity Accounting
Integrity Accounting Tax Reform Special Report Updated 8/15/2018 On Friday, December 22, 2017, the "Tax Cuts and Jobs Act" (H.R. 1) was signed into law by President Trump. Almost all of these provisions
More informationTax Cuts and Jobs Act of 2017 (TCJA) Key Individual Tax Provisions
Income Tax Rates and Exemptions Tax Rates and Brackets (TCJA) Key Individual Tax Provisions 1(j) 2018 2025 The following seven tax brackets apply for individuals: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
More informationTAX CUTS AND JOBS ACT OF 2017
Scott Varon, CFP svaron@wealthmd.com 404.926.1312 www.wealthmd.com TAX CUTS AND JOBS ACT OF 2017 This table compares the predominate changes made by the Tax Cuts and Jobs Act of 2017 to the tax law as
More informationGovernment Affairs. The White Papers TAX REFORM.
Government Affairs The White Papers TAX REFORM www.independentagent.com January 3, 2018 Below is a summary of the provisions of the new tax reform law that are most likely to impact Big I members. This
More informationTax Cuts and Jobs Act of 2017
Tax Cuts and Jobs Act of 2017 Important Highlights for Individuals and Small Businesses On December 15, 2017, Congress released the 2017 Tax Cut and Jobs Act ( the Act ) that has now passed both the House
More informationImpact of 2017 Tax Act on Individuals. From The Editors
Impact of 2017 Tax Act on Individuals From The Editors On December 22, 2017, President Trump signed into law the most extensive tax legislation since 1986, resulting in sweeping changes to the tax system,
More informationHead of Household $0 - $9,525 $13,600 $9,525 - $38,700 $13,600 - $51,800 $38,700 - $82,500 $51,800 - $82,500 $82,500 - $157,500 $157,500
TAX REFORM - IMPACT TO INDIVIDUALS Summary On Friday, December 22, 2017, the President signed the Tax Cuts and Jobs Act (the Act ). The Act provides the most comprehensive update to the tax code since
More informationTAX REFORM TCJA TAX CUTS AND JOBS ACT AL NELLA & CO, LLP CHRIS KOLLAJA & KEVIN TUSING HONE MAXWELL LLP AUBREY HONE
TAX REFORM TCJA TAX CUTS AND JOBS ACT AL NELLA & CO, LLP CHRIS KOLLAJA & KEVIN TUSING HONE MAXWELL LLP AUBREY HONE New Individual Tax Rates New rate structure with seven tax brackets 10% (same as 2017)
More informationHighlights of the Senate Tax Cuts and Jobs Act
WEALTH SOLUTIONS GROUP Highlights of the Senate Tax Cuts and Jobs Act The Senate passed a bill with the same name as the House, but with plenty of other differences The Senate version of a tax reform proposal
More informationTax reform highlights for individuals
from Personal Financial Services Tax reform highlights for individuals December 22, 2017 In brief On December 20, Congress gave final approval to the House and Senate conference committee agreement on
More informationSPECIAL REPORT. Tax Law Essentials. Brought to you by Mercer Advisors
SPECIAL REPORT Tax Law Essentials Brought to you by Mercer Advisors Game-changing tax package The recently enacted Tax Cuts and Jobs Act (TCJA) is a sweeping, game-changing tax package. Here s a look at
More informationTax Cuts and Jobs Act of 2017
On December 22, 2017, President Donald Trump signed into law H.R. 1, the Tax Cuts and Jobs Act of 2017 (TCJA). This new tax legislation, slightly over 500 pages in length, is the most significant revision
More informationTax Cut and Jobs Act. (updated 12/17/17) assurance - consulting - tax - technology - pncpa.com
Tax Cut and Jobs Act (updated 12/17/17) assurance - consulting - tax - technology - pncpa.com Postlethwaite & Netterville, A Professional Accounting Corporation Overview Individual Tax Tax Reform Individual
More informationTax Update: Legislative Developments and Tax Planning for Law Firms and Attorneys
Tax Update: Legislative Developments and Tax Planning for Law Firms and Attorneys Presented by Kristin Bettorf, CPA FM24 5/4/2018 4:15 PM The handout(s) and presentation(s) attached are copyright and trademark
More informationTax Cuts and Jobs Act February 8, 2018
Tax Cuts and Jobs Act 2017 February 8, 2018 Disclaimer This presentation is provided solely for the purpose of enhancing knowledge on tax matters. It does not provide tax advice to any specific taxpayer
More informationCOMPARISON OF THE HOUSE- AND SENATE-PASSED VERSIONS OF THE TAX CUTS AND JOBS ACT
COMPARISON OF THE HOUSE- AND SENATE-PASSED VERSIONS OF THE TAX CUTS AND JOBS ACT Prepared by the Staff of the JOINT COMMITTEE ON TAXATION December 7, 2017 JCX-64-17 INTRODUCTION This document, 1 prepared
More informationIndividual Provisions page 2. New Deduction for Pass-through Income page 5. Corporate (and Other Business) Provisions page 6
Table of Contents Individual Provisions page 2 New Deduction for Pass-through Income page 5 Corporate (and Other Business) Provisions page 6 Partnership (and Other Pass-through Business) Provisions page
More information20% maximum corporate tax rate. 25% maximum rate for personal service corporations.
H.R. 1, THE TAX CUTS AND JOBS ACT, PASSED BY HOUSE OF REPRESENTATIVES ON NOVEMBER 16, 2017 ( HOUSE BILL ) THE TAX CUTS AND JOBS ACT, AS PASSED BY THE SENATE ON DECEMBER 2, 2017 ( ) Except as noted, legislation
More informationHFMA Annual AccounTing and AudiTing UpdaTe. Tax UpdaTe
HFMA Annual AccounTing and AudiTing UpdaTe Tax UpdaTe Presented by: Jeffrey J. Petrell, JD, CPA, CGMA Partner Health Care Tax Services Kelly A. Brocious, CPA Senior Manager Health Care Tax Services 97
More informationCopyright 2017 AICPA Unauthorized Copying Prohibited TAX REFORM
Copyright 2017 AICPA Unauthorized Copying Prohibited TAX REFORM A Special Report on the Tax Cuts and Jobs Act of 2017 President Donald Trump on Friday, December 22, 2017, signed into law H.R. 1, known
More informationTAX CUTS AND JOBS ACT OF 2017 (TCJA) and Its Potential Impact
TAX CUTS AND JOBS ACT OF 2017 (TCJA) and Its Potential Impact One of President Trump s major campaign promises was that he would simplify the federal tax code to the point that we could file using a postcard.
More informationSENATE TAX REFORM PROPOSAL INDIVIDUALS
The following chart sets forth some of the provisions affecting individuals in the Senate Finance Committee s version of the Tax Cuts and Jobs Act bill, as approved by the Senate Finance Committee on November
More informationSENATE TAX REFORM PROPOSAL INDIVIDUALS
The following chart sets forth some of the provisions affecting individuals in the Senate s version of the Tax Cuts and Jobs Act, as approved by the Senate on December 2, 2017. This chart highlights only
More informationThe Tax Cuts and Jobs Act Impact on Individual Taxpayers
The Tax Cuts and Jobs Act Impact on Individual Taxpayers Summary On Wednesday, December 20th, Congress passed the Tax Cuts and Jobs Act (the Act ). The Act reflects the final provisions agreed upon by
More informationIndividual Taxes. TAX CUTS & JOBS ACT OF Tax Brackets: 7 Tax Brackets: 7 Tax Brackets: 4 Tax Brackets:
COMPARISON OF CURRENT TAX LAW VS. TAX CUTS AND JOBS ACT Individual Taxes Ordinary Income Tax Brackets (Single Tax Brackets Shown) 10%: $0 - $9,325 15%: $9,326 - $37,950 25%: $37,951 - $91,900 28%: $91,901
More informationROBINSON, FARMER, COX ASSOCIATES
ROBINSON, FARMER, COX ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL LIMITED LIABILITY COMPANY December 2017 Client Bulletin TAX CUTS AND JOBS ACT Major Highlights On December 20, 2017, Congress
More informationCONGRESS JANUARY Tax Cuts and Jobs Act (H.R. 1)
Advanced Planning Group EYE ON JANUARY 2018 Tax Cuts and Jobs Act (H.R. 1) The Tax Cuts and Jobs Act (TCJA) has been passed by Congress and signed by President Trump. TCJA contains major tax revisions
More informationTax Cuts and Jobs Act. Durham Chamber of Commerce Public Policy Meeting January 9, 2018
Tax Cuts and Jobs Act Durham Chamber of Commerce Public Policy Meeting January 9, 2018 Tax Cuts in Billions Corporate/Business ($653) S-Corps/Partnership/Sole Proprietor ($414) International Tax Changes
More informationN/A. Kiddie Tax Various bracket thresholds Ordinary and capital gains rates applicable to trusts and estates
We have prepared a summary of the House and the Senate versions of the proposed tax reform bill. Once they reach an agreement on a final bill, we will update the summary as needed. House Bill (H. R. 1)
More informationCorporate and Business Provision House Bill (HR 1) Senate Bill Final Bill
Selected provisions of the House and Senate tax reform bills as passed by both houses of Congress which resulted in the final bill in the far right column. Introduction: This summary contains what ZLQ
More informationTAX REFORM: IMPACT ON BUSINESSES AND INDIVIDUALS. February 8, 2018 Bruce I. Booken Rose K. Wilson
TAX REFORM: IMPACT ON BUSINESSES AND INDIVIDUALS February 8, 2018 Bruce I. Booken Rose K. Wilson The 2017 Tax Act Signed into law on December 22, 2017 Provisions apply NOW to taxable years beginning after
More informationNew Tax Rules. For You and Your Business Owners
New Tax Rules For You and Your Business Owners 199A-The 20% Deduction for Pass Throughs The New Rules for Meals & Entertainment QSBS-Qualified Small Business Stock And the New Depreciation Rules Presented
More informationBreaking Down the Tax Cuts & Jobs Act of COPYRIGHT 2018 Bowles Rice LLP
Breaking Down the Tax Cuts & Jobs Act of 2017 COPYRIGHT 2018 Bowles Rice LLP Tax Avoidance is Good Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose
More informationTax Reform The Tax Cuts and Jobs Act March 2, 2018
FPA of Greater Indiana Tax Reform The Tax Cuts and Jobs Act March 2, 2018 Presented by: William R. Owen, Jr. CPA, CFP BGBC Partners, LLP 300 N. Meridian Street Indianapolis, IN 46204 (317) 860-1092 FPA
More informationTAX CUTS AND JOB ACT OF 2017 Highlights
2017 TAX CUTS AND JOB ACT OF 2017 Highlights UPDATED January 9, 2018 www.cordascocpa.com TAX CUTS AND JOBS ACT OF 2017 INTRODUCTION After months of intense negotiations, the President signed the Tax Cuts
More informationPRIVATE CLIENT SERVICES
FEBRUARY 2018 www.bdo.com AN ALERT FROM THE BDO PRIVATE CLIENT SERVICES PRACTICE PRIVATE CLIENT SERVICES SUBJECT TAX REFORM S IMPACT ON INDIVIDUAL TAXPAYERS SUMMARY On December 22, 2017, President Donald
More informationTax Cuts and Jobs Act of 2017
Tax Cuts and Jobs Act of 2017 Introduction After months of intense negotiations, the President signed the Tax Cuts And Jobs Act Of 2017 (the New Law ) on December 22, 2017 - the most significant tax reform
More informationBrackets (seven) - Taxable Income Single Filers. Between $9,525 and $38,700. Between $2,550 and $9,150. Between $157,500 and $200,000
Individual Taxes (Which Would Expire After 2025) Brackets (seven) - Taxable Income Single Filers Up to $9,525 Between $9,525 and $38,700 Between $38,700 and $82,500 Between $200,000 and $500,000 Above
More informationTAX CUTS AND JOBS ACT SUMMARY
TAX CUTS AND JOBS ACT SUMMARY Mariner Retirement Advisors The Tax Cuts and Jobs Act ( TCJA ) was signed by President Trump on December 22, 2017. The Act makes sweeping changes to the U.S. tax code and
More information2017 Tax Reform: Checkpoint Special Study on Individual Tax Changes in the Tax Cuts and Jobs Act
Federal Taxes Weekly Alert, 12/21/2017 2017 Tax Reform: Checkpoint Special Study on Individual Tax Changes in the Tax Cuts and Jobs Act Text of the Tax Cuts and Jobs Act. Joint Explanatory Statement of
More informationLaw Offices of Bradley J. Frigon 6500 S. Quebec St. Suite 330 Englewood, CO
2018 National Conference on Special Needs Planning and Special Needs Trusts Tax Reform and Year End Tax Planning for Self Settled and Third Party Trusts Bradley J. Frigon October 18, 2018 Law Offices of
More informationTax Cuts & Jobs Act of 2017
Tax Cuts & Jobs Act of 2017 WHAT BUSINESSES & S NEED TO KNOW DECEMBER 19, 2017 TO RECEIVE CPE CREDIT Participate in entire webinar Answer polls when they are provided If you are viewing this webinar in
More informationTax Cuts and Jobs Act Questions and Answers for Small Businesses
Tax Cuts and Jobs Act Questions and Answers for Small Businesses February, 2018 This is a summary of items that are subject to variations and exceptions. It is not to be relied upon as tax advice. For
More informationComparison of House and Senate Tax Reform Bills
Comparison of House and Senate Tax Reform Bills Provision Individual Rates (Single) 12% $0 - $44,999 25% $45,000 - $199,999 35% $200,000 - $499,999 39.6% $500,000 + Senate Version of H.R. 1, the 10% $0
More informationIndividual Provisions Under the Tax Cuts and Jobs Act Compared to Previous Tax Law
Reduction & Simplification of Individual Income Tax Rates Individual rates on ordinary income (1) Seven brackets with top rate of 39.6 percent # Seven brackets with top rate of 37 percent #^ Unearned income
More informationNew Tax Law: Issues for Partnerships, S corporations, and Their Owners
New Tax Law: Issues for Partnerships, S corporations, and Their Owners January 18, 2018 1 Introduction H.R. 1, originally known as the Tax Cuts and Jobs Act, was signed into law on December 22, 2017. The
More informationIndividual Tax Changes in the Tax Cuts and Jobs Act Ken Bagner, CPA, MST
Individual Tax Changes in the Tax Cuts and Jobs Act Ken Bagner, CPA, MST Kenneth.Bagner@SobelCoLLC.com 973-994-9494 December 27, 2017 Agenda Today s presentation will provide a basic overview of some of
More informationTAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU
TAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU THE TAX CUTS & JOBS ACT OF 2017 (HR 1) Preliminary Summary Analysis Presented by: A. Mac Stevens, CPA Member of the Eide Bailly LLP National Tax Office Ron
More informationINCOME TAX CONSEQUENCES OF THE TAX CUTS AND JOBS ACT. Michael D. Minton Brad Gould Dana M. Apfelbaum TABLE OF CONTENTS
INCOME TAX CONSEQUENCES OF THE TAX CUTS AND JOBS ACT Michael D. Minton Brad Gould Dana M. Apfelbaum TABLE OF CONTENTS I. Background Information II. III. IV. Changes Primarily Affecting Individual Taxpayers
More informationIndividual income tax provision highlights
Legislative Update Tax Cuts and Jobs Act Individual income tax provision highlights On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (P.L. 115-97). Highlights of the key
More informationAdam Williams. Anthony Licavoli. Principal Tax Manager
1 2 Adam Williams Principal 734.302.4179 adam.williams@rehmann.com Anthony Licavoli Tax Manager 248.463.4598 anthony.licavoli@rehmann.com 3 4 5 What is your impression about the speed at which Congress
More informationWHAT TAX REFORM MEANS FOR SMALL BUSINESSES & PASS-THROUGH ENTITIES. Julie Peters, Attorney Polston Tax Resolution & Accounting
WHAT TAX REFORM MEANS FOR SMALL BUSINESSES & PASS-THROUGH ENTITIES Julie Peters, Attorney Polston Tax Resolution & Accounting TAX CUT AND JOBS ACT The new tax law, called the Tax Cut and Jobs Act (TCJA),
More informationU.S. Tax Legislation Individual and Passthroughs Provisions. Individual Provisions
U.S. Tax Legislation Individual and Passthroughs Provisions On December 20, 2017, Congress enacted comprehensive tax legislation (the New Law ), and this memorandum highlights some of the important provisions
More informationBig Changes for Health Care Entities TA X C U T S & J O B S A C T O F
Big Changes for Health Care Entities TA X C U T S & J O B S A C T O F 2 0 1 7 OUR GOAL FOR TODAY Develop an awareness of the recent law changes that will affect healthcare organizations OUR GOAL FOR TODAY
More informationTax Update Focusing on the Tax Cuts and Jobs Act of John F. Ermer, CPA Israel O. Perez, CPA
Tax Update Focusing on the Tax Cuts and Jobs Act of 2017 John F. Ermer, CPA Israel O. Perez, CPA Contact Information John F. Ermer, CPA E-mail: jermer@bhcbcpa.com Telephone: 203) 787-6527 Israel O. Perez,
More information5/29/ TAX CUTS AND JOBS ACT OVERVIEW. Individual Tax. Introduction-Individual Provisions. Dauphin County Bar Association May 30, 2018
2017 TAX CUTS AND JOBS ACT OVERVIEW Dauphin County Bar Association May 30, 2018 Individual Tax 2 Introduction-Individual Provisions In general, the individual provisions go into effect starting on January
More informationTAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU
TAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU DISCLAIMER These materials, and the accompanying oral presentation, are for educational purposes only and are not intended to be written advice concerning
More information2018 TAX SEMINAR OPPORTUNITIES & IMPACTS. Tax Cuts and Jobs Acts Enacted December 22, Most changes go into effect January 1, 2018
2018 TAX SEMINAR OPPORTUNITIES & IMPACTS Tax Cuts and Jobs Acts Enacted December 22, 2017 Most changes go into effect January 1, 2018 S e m i n a r s p o n s o re d b y A n n L a u f m a n o f A L A F
More informationTaxpayers may recharacterize contributions to one type of IRA (traditional or Roth) as a contribution to the other type of IRA.
BENEFITS Affordable Care Act Individual Mandate Under the Affordable Care Act, individuals must have minimum essential The individual responsibility payment is reduced to $0 effective for months beginning
More informationHOUSE TAX REFORM PROPOSAL INDIVIDUALS
The following chart sets forth some of the provisions affecting individuals in the Tax Cuts and Jobs Act bill, as approved by the House Ways and Means Committee on November 9, 2017. This chart highlights
More informationThe Tax Cuts and Jobs Act: An Executive Summary
The Tax Cuts and Jobs Act: An Executive Summary by Daniel B. Geraghty daniel.geraghty@huschblackwell.com 414.978.5518 by Kyle J. Gilster kyle.gilster@huschblackwell.com 202.378.2303 CLIENT ALERT NOVEMBER
More informationLaw Offices of Bradley J. Frigon 6500 S. Quebec St. Suite 330 Englewood, CO
2018 National Conference on Special Needs Planning and Special Needs Trusts The Impact of Tax Cuts and Jobs Act on Special Needs Trusts Bradley J. Frigon October 19, 2018 Law Offices of Bradley J. Frigon
More informationHIGHLIGHTS OF TAX CUTS AND JOBS ACT OF 2017
HIGHLIGHTS OF TAX CUTS AND JOBS ACT OF 2017 SELECTED CHANGES PRIMARILY IMPACTING INDIVIDUALS INDIVIDUAL INCOME TAX RATES (Effective for tax years beginning after 2017 and before 2026) Single Individuals
More informationThe Tax Cuts and Jobs Act
Advanced Planning The Tax Cuts and Jobs Act Congress has passed the Tax Cuts and Jobs Act, the most sweeping tax reform since 1986. In today s world, pursuing your life s goals is being challenged in new
More informationThe Top 6 New Tax Bill Provisions Impacting the Real Estate Industry
The Top 6 New Tax Bill Provisions Impacting the Real Estate Industry The 2018 Tax Bill contains many major changes to the tax landscape for both businesses and individuals. Below are some key highlights
More informationThe Tax Cuts and Jobs Act1 (TCJA) made
Significant Provisions of the Tax Cuts and Jobs Act Affecting Closely Held Businesses and Their Owners by Gerald A. Shanker The Tax Cuts and Jobs Act1 (TCJA) made significant changes to the Internal Revenue
More informationWhat's in the Tax Agreement for Individuals?
What's in the Tax Agreement for Individuals? INDIVIDUAL RATES AND CREDITS The legislation would preserve the seven-rate structure for individuals, while modifying the rates in tax years 2018 through 2025
More informationTax Cuts & Jobs Act W H AT B U S I N E S S E S & I N D I V I D U A L S N E E D T O K N O W D E C E M B E R 1 2, 2018
Tax Cuts & Jobs Act W H AT B U S I N E S S E S & I N D I V I D U A L S N E E D T O K N O W D E C E M B E R 1 2, 2018 WHAT WE WILL COVER TODAY 1 2 Business & individual provisions of the Tax Cuts and Jobs
More informationTHE TAX CUTS AND JOBS ACT
THE TAX CUTS AND JOBS ACT INDIVIDUALS The Tax Cuts and Jobs Act contains numerous provisions that will have a significant impact on the tax liability reported by individuals and families. Some of the more
More informationTax Reform Side by Side
Tax Reform Side by Side NAIFA s advocacy, including politically knowledgeable members, professional staff and industry coalitions, continues to have a positive impact on tax reform. The tax debate isn
More informationNATIONAL SOCIETY OF TAX PROFESSIONALS TAX CUTS AND JOBS ACT H.R.1 COMPARISON OF HOUSE AND SENATE BILLS AS OF DECEMBER 6, 2017
NATIONAL SOCIETY OF TAX PROFESSIONALS TAX CUTS AND JOBS ACT H.R.1 COMPARISON OF HOUSE AND SENATE BILLS AS OF DECEMBER 6, 2017 PROVISION: HOUSE BILL SENATE BILL 1. Individual Tax Rates 12%, 25%, 35%, 39.6%.
More information2018 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS
2018 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS INTRODUCTION With year-end approaching, this is the time of year we normally suggest possible year-end tax strategies for our clients. However, from a
More informationTAX REFORM. Overview. Congressional Republican Timeline. Senate Finance Links. The U.S. House of Representatives. Joint Committee on Taxation
TAX REFORM Overview On November 2, House Republicans released their tax reform bill titled, Tax Cuts and Jobs Act. Michael Best Strategies (MBS) tax policy experts, Denise Bode and Anne Canfield continue
More informationTax Cuts and Jobs Act Key Implications for Individuals
Tax Cuts and Jobs Act Key Implications for Individuals Overview The 2017 Tax Reform legislation, the most significant federal tax law reform in over 30 years, was passed by both the House of Representatives
More informationMost of the provisions discussed below apply beginning in 2018, and many terminate after 2025.
January 26, 2018 To the Clients and Friends of Nathan Wechsler & Company Congress delivered the much-anticipated tax reform bill just before the end of the year. Just as they kept us in suspense as to
More informationTax Update for 2018 and 2019
Tax Update for 2018 and 2019 Individual Tax Changes Business Tax Changes Depreciation Changes Inflation Adjustments IRS Mileage Rates Affordable Care Act Partnership Audit Rules The following is a summary
More informationTAX REFORM: WHAT REFORM MEANS FOR YOUR BOTTOM LINE. Bank Holding Company Association May 7, 2018
TAX REFORM: WHAT REFORM MEANS FOR YOUR BOTTOM LINE Bank Holding Company Association May 7, 2018 Agenda Tax Reform History Overview of Tax Reform Business Provisions Pass Through Entity Deduction & Planning
More informationKey Provisions of 2017 Tax Reform
Key Provisions of 2017 Tax Reform The final provisions of the 2017 tax reform bill are finally here. The goal of this publication is to briefly highlight some of the key changes and planning issues of
More informationTax Cuts and Jobs Act Chairman s Mark Section-by-Section Summary (As modified, amended, & ordered to be favorably reported, November 16, 2017)
Tax Cuts and Jobs Act Chairman s Mark Section-by-Section Summary (As modified, amended, & ordered to be favorably reported, November 16, 2017) I TAX REFORM FOR INDIVIDUALS A. Simplification and Reform
More information2017 TAX CUTS AND JOBS ACT
2017 TAX CUTS AND JOBS ACT The Tax Cuts and Jobs Act was signed by President Trump on December 22, 2017. The Act makes sweeping changes to the U.S. tax code and impacts most taxpayers; especially individuals
More informationBiggest tax bill in 30+ years redefines tax landscape
NBC Tower - Suite 1500 455 North Cityfront Plaza Drive Chicago, IL 60611 312.670.7444 www.orba.com Biggest tax bill in 30+ years redefines tax landscape On December 22, 2017, the most sweeping tax legislation
More informationFor Better or Worse? Individual, Estate, and Presented Trust by: Taxes Under the New Tax Reform [Date] Act
Abbott, Stringham & Lynch Tax Group For Better or Worse? Individual, Estate, and Presented Trust by: Taxes Under the New Tax Reform [Date] Act Presented by: Julie Malekhedayat, CPA Chris Madrid, CPA Anu
More informationKEY PROVISIONS OF THE TAX CUTS AND JOBS ACT (TCJA) OF 2017
KEY PROVISIONS OF THE TAX CUTS AND JOBS ACT (TCJA) OF 2017 New tax laws resulting from the TCJA represent the most significant changes in our tax structure in more than 30 years. Most provisions for individuals
More informationWhat Now? Implications of the Tax Cut and Jobs Act of 2017 on Families and Business
What Now? Implications of the Tax Cut and Jobs Act of 2017 on Families and Business August 10, 2018 Sarah Armstrong, Esq. Marjorie A. Rogers, Esq. Ed Street, CPA/ABV/CFF, CVA, ASA The information provided
More informationTAX CUTS AND JOBS ACT (H.R. 1), 2018 A CLOSER LOOK PREPARED BY: ADIL A. BALOCH, CPA; CTRS. Accurate Records and Tax Services, Inc.
TAX CUTS AND JOBS ACT (H.R. 1), 2018 A CLOSER LOOK PREPARED BY: ADIL A. BALOCH, CPA; CTRS Accurate Records and Tax Services, Inc. 18562 Office Park Dr. Montgomery Village, MD 20886 (301) 519-1445 info@aabcpa.com
More informationTAX REFORM CORPORATE & BUSINESS
The following chart sets forth some of the provisions affecting businesses in H.R. 1, originally called the Tax Cuts and Jobs Act (the Act), as signed by President Donald Trump on December 22, 2017. This
More informationJim Nitsche. Billy Hopkins. Sherry Porter
Billy Hopkins bhopkins@wyattfirm.com Jim Nitsche jnitsche@wyattfirm.com Sherry Porter spporter@wyattfirm.com Business Income Tax Changes 1. Corporate income tax rate reduced to 21% for tax years beginning
More informationBusinesses. Provision Corporate income Eight brackets with a 35% top rate. 21% flat rate
Businesses 21% flat rate Corporate income Eight brackets with a 35% top rate Personal service corporations taxed No special rate for personal service at a 35% flat rate corporations Passthrough income
More informationExamining the Tax Cuts and Jobs Act
Examining the Tax Cuts and Jobs Act Sweeping tax law changes In the final weeks of 2017, Congress passed the most comprehensive tax reform package in decades, reducing tax rates for individuals and corporations
More informationTAX CUTS AND JOBS ACT
TAX CUTS AND JOBS ACT On December 22, President Trump signed into law H.R. 1, the Tax Cuts and Jobs Act, a sweeping tax reform law that will entirely change the tax landscape. The legislation reflects
More informationTax Cuts and Jobs Act
The following sections contain Complete Analysis of the Tax Cuts and Jobs Act, PL 115-97, 12/22/2017 Act, to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget
More informationNavigating the Complexities of Tax Simplification PART 1 TAX CUTS & JOBS ACT (TCJA)
Navigating the Complexities of Tax Simplification PART 1 TAX CUTS & JOBS ACT (TCJA) 2 1 2 1 TCJA BACKGROUND An act to provide for reconciliation pursuant to titles II and V of the concurrent resolution
More information