Most of the provisions discussed below apply beginning in 2018, and many terminate after 2025.

Size: px
Start display at page:

Download "Most of the provisions discussed below apply beginning in 2018, and many terminate after 2025."

Transcription

1 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 whether it would ultimately receive the needed votes to pass, they also kept us in suspense on many of the significant final details of the legislation. Most of the provisions discussed below apply beginning in 2018, and many terminate after Our task, beginning now and continuing all year (and into the future) is to determine how this affects each of you, and what, if any, steps we should recommend for you to respond to the changes. It will be an interesting journey. There is something, or many things, for everyone in this legislation. Some items you will like, and some PROVISIONS AFFECTING INDIVIDUALS: Tax rates: The cornerstone of the Act is the reduction of individual and corporate (discussed later) tax rates. The following tables will illustrate the change made by the Act under the Married Filing Jointly tables. Bear in mind that the various levels would have changed slightly from 2017 to 2018 due to cost of living increases for the year. For example, the upper level of the 10% bracket in 2017 ($18,650) may well have become the $19,050 level used in the Act for 2018 anyway Rates for Married, Filing Jointly 2018 Rates for Married, Filing Jointly $ - $ 18, % $ - $ 19, % $ 18,651 $ 75, % $ 19,051 $ 77, % $ 75,901 $ 153, % $ 77,401 $ 165, % $ 153,101 $ 233, % $ 165,001 $ 315, % $ 233,351 $ 416, % $ 315,001 $ 400, % $ 416,701 $ 470, % $ 400,001 $ 600, % over $470, % over $600, % 1

2 For illustration purposes, the following chart presents the amount of income tax computed at various levels of taxable income, applying the Married Filing Jointly rates for 2017 and for 2018, under the new law: Taxable Income Rates Rates Savings 100,000 16,478 13,879 2, ,000 28,978 24,879 4, ,000 42,885 36,579 6, ,000 57,718 47,439 10, ,000 74,218 60,579 13, , ,218 91,379 15, , , ,379 16, , , ,379 21,453 In addition, the Act makes a minor change in the index to be used for annual adjustments to be made to the rate brackets in future years. The Kiddie Tax, under which affected children s unearned income had been taxed at their parents rates of tax, has been modified. Such income will now be taxed at rates applicable to estates and trusts. This may mean lower taxes for some, and higher for others. Standard Deduction: The standard deduction has been almost doubled under the new rules. Married persons filing jointly will now be entitled to a standard deduction of $24,000, up from $12,700 under previous rules. This higher amount, coupled with more restrictions on deductions (to be discussed, below) will provide relief for many taxpayers, and will serve to reduce taxable income for many compared to 2017 provisions. Many more people will no longer be itemizing their deductions. Personal Exemptions: Taxpayers are entitled to a deduction of $4,050 (in 2017) for themselves, and for every dependent. This deduction has been subjected to phase out, or reduction, as income exceeds a certain level. This deduction provided no tax benefit to taxpayers that were subject to the Alternative Minimum Tax. The Act suspends this deduction for tax years 2018 through Miscellaneous Itemized Deductions: Miscellaneous deductions, reported near the bottom of Schedule A, include investment expenses, tax preparation fees and employee business expenses among other expenses. These expenses could only be deducted to the extent that they exceeded 2% of a taxpayer s Adjusted Gross Income, a threshold many taxpayers did not exceed. In addition, taxpayers subject to the Alternative Minimum Tax received no tax benefit from these. A tax deduction for such expenses has been suspended for tax years 2018 through Educator Expenses: Teachers deductions for work related expenses are above the line deductions, deducted on the front page of their tax return, and deducted whether or not the taxpayer itemizes. Such deductions have been limited to $250 per year. The Act increases this limit to $500 for tax years

3 Overall Limitations on Itemized Deductions: Under prior law, if a taxpayer s Adjusted Gross Income exceeded certain thresholds, the allowable amount of Itemized Deductions was reduced by up to 80%. Beginning in 2018 and continuing through 2025, this limitation is suspended. Mortgage Interest Deduction: Under prior law, a taxpayer may deduct interest on up to $1 million (in total) of qualified acquisition debt incurred to purchase or improve a principal residence and one other residence. In addition, interest incurred on home equity debt of up to $100,000 is also deductible. This is for funds borrowed, subject to a mortgage on a qualified home, that otherwise does not qualify as acquisition indebtedness. It should be noted that interest on home equity debt was not deductible in the computing of the Alternative Minimum Tax, resulting in no tax benefit if the taxpayer paid AMT in the year. The maximum amount of acquisition debt that may be considered for interest deductions is now reduced to $750,000, for debt incurred after December 15, Refinancing of pre-existing debt of up to $1 million is still acceptable, as long as no new funds are borrowed. In 2026, the limitation reverts back to $1 million. For tax years 2018 through 2025, no interest may be deducted on home equity indebtedness no matter when it was borrowed. State and Local Tax Deductions: Under prior law, a taxpayer may claim a deduction for state income (or sales) tax, property tax and value based taxes on personal property, such as automobiles. Again, taxpayers that were subject to the Alternative Minimum Tax received limited or no net tax benefit from these expenses. The Act places a cap on these deductions at $10,000 for most taxpayers. Married persons filing separately are limited to $5,000. Charitable Contributions: The new law made several changes to individuals charitable deductions. On the positive side, a taxpayer s overall annual limit for charitable deductions has been increased from 50% to 60% of his/her Adjusted Gross Income for cash donations to public charities from 2018 until Amounts in excess of that may still be carried forward to be used in future years. The Act now requires all contributions of $250 or more to be substantiated by a contemporaneous written acknowledgement from the charity. Exceptions were permitted if the charity reported the donation to IRS. That exception has been removed. Finally, beginning in 2018, no charitable deduction will be permitted to taxpayers making donations to universities for athletic seating rights. Medical Expenses: Currently taxpayers may claim an itemized deduction for medical expenses (including qualified insurance premiums) if the total exceeded 10% of their Adjusted Gross Income. For tax years 2017 and 2018, the Act restores the 7.5% threshold, which had been the law before it was increased to 10% a number of years ago. 3

4 Alimony: Under current law, payers of alimony generally were able to deduct such amounts. This was reflected on page 1 of their tax return, as an above-the-line deduction. That meant that it did not matter whether the taxpayer itemized or not, and the deduction was not subject to any of the limitations imposed on Itemized Deductions. Recipients of alimony would report that as taxable income. Under certain circumstances (generally by agreement incorporated into the written divorce decree) the payments would not be deducted or reported as taxable income. For divorce decrees or separation agreements entered into after 2018, none of the payments would be deductible or reported as taxable income. Moving Expenses: Under prior law a taxpayer may deduct, as an above-the-line deduction, qualified moving expenses. If such expenses were reimbursed by the taxpayer s employer, the employer may deduct it, and it would not be treated as income by the employee. Except in the case of certain military personnel, this beneficial treatment is suspended for tax years 2018 through Child Tax Credit: Prior law allowed for a credit for qualified children in the household of up to $1,000 per child. The credit was reduced when Adjusted Gross Income exceeded $75,000 on a jointly filed return. In cases where the credit exceeded a taxpayer s tax for the year, a portion of the credit was still allowed to reimburse some of the Social Security and Medicare taxes paid by the taxpayer. This was known as the refundable portion of the credit. The Act increases the potential credit to $2,000 per child, increases the income level at which phase out begins to $400,000 for joint filers, provides a credit of up to $500 for certain dependents other than children, and increases the amount that may qualify as refundable for tax years 2018 through It also requires inclusion of qualified dependents Social Security Numbers on the tax return claiming the credit. Alternative Minimum Tax: The Alternative Minimum Tax has been a significant factor in computing the net tax due by many unsuspecting taxpayers. In brief, it is an alternative method by which a taxpayer s liability is recomputed for a year. Many of the items of income used in the normal computation of tax remains the same. Certain itemized deductions are not allowed for Alternative Minimum Tax purposes (state and local taxes, home equity interest and Miscellaneous Itemized Deductions, to name a few). In addition, and beyond the scope of this analysis, certain other items are added or deducted each year. Among those might be Private Activity Bond Interest, depreciation adjustments, adjustments for the accounting for income on long-term contracts, percentage depletions and many other items as defined in the Internal Revenue Code. An exemption amount is then deducted to arrive at a taxable amount. For 2017, the exemption for joint filers was scheduled to be $84,500. However, it was subject to phase out provisions when a taxpayer s income exceeded $160,900. 4

5 Under the Act, many of the same provisions apply with two very significant changes. First, the exemption amount for joint filers has been increased to $109,400. Secondly, and perhaps more significantly for many, the phase-out provisions do not begin to apply until the income level of $1 million (for joint filers). This will remove many taxpayers from the ranks of those paying AMT. Other items affecting individuals include the following: 1. Casualty loss deductions for non-business property will only be allowed in the cases of federally declared disasters. This will apply to tax years 2018 through Gambling loss rules are being modified for the years 2018 through Now all losses and related expenses are limited to the amount of reported winnings. 3. Elementary and secondary school expenses of up to $10,000 per year may qualify to be paid from Section 529 plans. 4. ABLE account contribution limitations have been increased, and contributions may now qualify for the Saver s Credit. 5. Student debt discharged due to disability or death will not be taxable. 6. Further restrictions have been imposed on employee achievement awards qualifying for exclusion from the employee s income. Besides cash, sporting and amusement event tickets, meal vouchers and similar items may no longer be used. ESTATE AND GIFT TAX: From 2018 through 2025, the Act increases the federal estate and gift unified credit exclusion and the generation skipping transfer exclusion to $10 million, adjusted forward for inflation from 2011, this results in an exemption of approximately $11,000,000 starting in PROVISIONS AFFECTING BUSINESS TRANSACTIONS: Like Kind Exchanges: Under current rules, property used in a business, or held for investment may be exchanged for similar property without tax consequence if no cash is received in the transaction. The Act limits this provision now only to exchanges involving real estate. This will affect many businesses that trade in older vehicles or equipment, when upgrading. Limitation on Business Interest Expense: For businesses averaging over $25 million in annual revenue, the Act will limit the amount of interest expense a business may deduct in a tax year. The maximum amount allowed is 30% of the business adjusted taxable income, computed before such interest; plus Business interest income; plus Floor plan interest expense Interest expense not allowed in a tax year due to this limitation may be carried forward indefinitely. The Act permits certain businesses involved in real estate and farming to escape this limitation by electing less favorable depreciation methods. Also exempt from this restriction are businesses averaging less than $25 million of annual receipts, certain regulated utilities and certain electric cooperatives. Domestic Production Activities Deduction: 5

6 In 2004 Congress added a provision that enabled taxpayers conducting certain business activities a deduction that eventually rose to be up to 9% of its taxable income. This provision is repealed by the Act. Net Operating Loss Deduction: A taxpayer has been permitted to use the net loss of a tax year to reduce or eliminate taxable profit of a prior year. This is done by filing an Application for Tentative Refund form with IRS to recoup taxes paid in a prior year. For years beginning before 2018 they may carry losses back to the prior two years. Unused losses may be carried forward and deducted against future years profits. Such losses may be carried forward and used for up to 20 years. The Act eliminates this carry back provision for all businesses except farming and certain insurance companies. It still permits carry forwards but limits a taxpayer s use of the deduction to 80% of the future years income. Unused losses can be carried forward indefinitely. This applies for losses incurred in years beginning in Certain insurance companies are exempt from this restriction. Research and Experimental Expenditures: Many businesses incur research expenses and qualify for a tax credit for such endeavors. Today a taxpayer may elect to currently deduct such expenses, or capitalize and amortize them over 60, or more, months. The Act will require taxpayers to capitalize all such expenses, and amortize them over a five year period. In addition, if the underlying project is abandoned, the taxpayer may not currently deduct the unamortized balance. It will be required to continue on the amortization schedule. Fortunately, this provision will not take effect until Meal and Entertainment Expenses: Under prior law, meal and entertainment expenses were partially (50% of the amount incurred) deductible. Entertainment expenses had to meet a requirement that they be directly related to, or associated with, the taxpayer s business. The Act eliminates the deduction for entertainment expenses. This includes tickets to events, and recreational and amusement activities. The costs associated with an employer owned facility providing meals for employees is now subject to the general 50% limitation. Meals in connection with business activity (such as overnight travel) are still 50% deductible. Further limitations on meals provided for employees become effective in Meals provided for the employer s convenience will no longer be deductible at all. Inventory Accounting: The Act changes the rules requiring all businesses to account for inventories. Now certain businesses that qualify to use the cash method of accounting will also be able to use the cash method with respect to purchases of certain goods. Qualified businesses are those that report less than $25 million of annual income, treat purchased goods as non-incidental materials and supplies, and do not reflect inventory on their financial statements. 6

7 It also increased the threshold for requiring a business to apply the Uniform Capitalization rules. These rules require that for tax purposes, administrative and other applicable operating expenses must be included in a business end of year inventory calculation. Now businesses with average annual receipts under $25 million may apply for a change in accounting method and may no longer find themselves subject to this onerous and expensive (more taxes due under these rules) requirement. Long-Term Contracts: Under the bill, more businesses will be allowed to account for contracts under a method other than the percentage of completion method. It applies to contracts that will be completed within two years for businesses whose average annual gross receipts do not exceed $25 million. The prior threshold was $10 million. Coupled with changes in the Alternative Minimum Tax, this provision may permit a significant deferral of income in certain circumstances. In the past, deferral of long-term contract income using a method of accounting other than the percentage of completion often resulted in AMT being paid in that year. Deductions related to purchase of capital assets: A taxpayer is permitted to elect to write off, or expense, certain property that it places in service in a tax year. This generally applies to tangible personal property, such as a piece of machinery used in its manufacturing plant. But it also applies to something as small as a desk used in an office. The annual limitation for this benefit in 2017 was $510,000. However, if the taxpayer placed over $2,030,000 of such assets in service in 2017, the ability to take such a deduction was lost, and the item would have to be depreciated under the applicable depreciation rules. This Act increases the annual deduction limitation to $1,000,000 and increases the amount of equipment that a taxpayer can place in service without reducing this benefit to $2,500,000. It also allows certain real property improvements to qualify. For many years now, bonus depreciation, or expensing, has accelerated the timing of depreciation deductions by various provisions permitting taxpayers to write off a high percentage of the equipment s cost in the first year of a depreciation cycle. Obviously, this would not apply in the case where a taxpayer elected Section 179 treatment. But for taxpayers who did not, or could not, do so this might provide a significant benefit. Other than the limitations that apply to Section 179 elections, expensing provides a very similar benefit to taxpayers. The Act provides that for qualified equipment purchases of property between September 28, 2017 and December 31, 2022, a taxpayer may claim a 100% expensing deduction. The allowance decreases by 20% each year thereafter until the provision terminates in The Act extends this provision to plants bearing fruit and nuts, and certain entertainment productions. It excludes certain public utility property from qualification, as well as property used in a business that was financed by a floor plan. The Act increases annual limitations on deductions for passenger automobiles used in a business. It removes computer equipment from the listed property category, meaning that record keeping of usage will not be required. 7

8 Property used in farming operations will now be allowed to use more favorable depreciation methods. Depreciation rules applicable to certain residential and nonresidential real estate have been mostly improved in the taxpayers favor. However, businesses that qualify to avoid the business interest limitation (see above) will be required to use a less favorable depreciation method on their property. Self- Created Property: Self-created assets will no longer be treated as capital assets. Gain or loss on the sale or disposal of these will be treated as ordinary gain or loss. This applies to patents, inventions, formula, etc. Music composition may still be treated as a capital asset. Life Insurance Policy Issues: The transfer of ownership of a life insurance policy to a third party under a life settlement contract must now be reported to IRS by the acquirer. More of the life insurance proceeds received by the third party may now be taxable income. The Act has made changes to the manner in which basis in a policy is computed by the insured. The basis will not be gross premiums paid. They must be reduced by a factor representing the benefit received from the policy. This would be based on mortality tables or some other reasonable charge. Denial of Deduction of Settlement of Certain Harassment Cases: The Act denies a tax deduction for costs incurred in settlement of sexual harassment cases that are subject to nondisclosure agreements. Credit for Paid Family Leave: The Act provides a tax credit of between 12.5% and 25% of the amounts paid in 2018 and 2019 to employees under family and medical leave programs. To qualify, all full-time employees must be allowed at least two weeks family and medical leave per year, providing paid time off for situations described in the Family and Medical Leave Act of Part time employees would be allowed pro rate amounts of time. To qualify, this employee benefit must be in addition to normal vacation and sick time policies. Other changes made that affect certain businesses include: 1. For rehabilitation of historic structures, the 20% rehabilitation tax credit will now be used over a five-year period instead of in the year the project is completed and placed in service. 2. Changes were made to inventory accounting for certain craft beverages. 3. Changes were made to the Original Issue Discount recognition rules. 4. Replanting of certain citrus crops may be expensed for minority co-owners. 5. Lobbying costs for issues before local governmental bodies will no longer be deductible. PROVISIONS AFFECTING C-CORPORATIONS: Tax rates: C-Corporations (corporations responsible for paying tax on its income) have been subject to tax at various rates between 15% and 35%. Corporations with taxable income over $335,000 have paid tax at a flat 34%. Those with income over $18.33 million have paid at 35%. Personal service corporations (accounting firms, law firms, and medical practices, among others) have also paid tax at a flat 35% rate. 8

9 For tax years beginning after December 31, 2017, all C-Corporations will pay tax at a flat 21% rate. For entities with taxable income below $90,400 this actually will cause their tax to increase. Entities having taxable income in excess of that amount, and all personal service corporations, will see a decrease in their taxes. Dividends Received Deductions: C-Corporations benefit from a deduction of 70%-80% of the amounts received from corporations in which it owns less than an 80% interest. The Act reduces this deduction to between 50%- 65%, and also reduces taxable income limits on its availability. Cash method of Accounting: The Act increases the annual revenue threshold for C-Corporations and partnerships having C- Corporations as owners that want to use the cash method of accounting to $25,000,000. It has also made it easier for such partnerships to qualify for this provision. Corporate Alternative Minimum Tax: Like individuals, C-Corporations are subject to the Alternative Minimum Tax. However, its impact on a significant portion of taxpayers is not as prevalent. For tax years beginning after December 31, 2017, the Act eliminates the corporate alternative minimum tax. In the case where the tax was imposed in earlier years, a credit was generated. The credit will remain in effect. It will be used to offset tax computed for the year and an additional portion will also be used as a refundable credit in tax years 2018 through PASS THROUGH ENTITIES: Qualified Business Income (QBI) Deduction: Besides rate reductions, another key component of the Act provides a deduction on certain business income earned by pass through entities and subject to tax at the individual or trust and estate level. This applies to income earned by partnerships, S-Corporations, sole proprietorships and Limited Liability Companies. The deduction is generally equal to the lesser of: 20% of a taxpayer s QBI; or 20% of the taxpayer s taxable income, excluding capital gains Income earned in certain personal service fields (health, law, accounting, consulting among others) are not eligible for the deduction if the taxpayer s taxable income exceeds $157,500 ($315,000 on a joint return). In addition, for taxpayers exceeding that taxable income level, the deduction is limited based on a function of the business entity s W-2 compensation paid to employees or investment in depreciable property. The rules for implementation are complex and include many limitations. Full discussion of this provision is beyond the scope of this analysis. This deduction is available for tax years beginning after December 31, 2017, and before January 1,

10 S- Corporations converting to C-Corporations: S-Corporations that revoke their S election may continue to treat distributions to shareholders as being from their Accumulated Adjustments Account rather than from the C-Corporation s Earnings and Profits for a two-year period, beginning on the date of enactment. That means that recipients having sufficient basis remaining in their stock holdings, will not be taxed at the federal level on the distributions. Electing Small Business Trust: ESBTs are trusts which make a special election allowing it to be eligible to hold stock in an S-Corporation. Effective January 1, 2018, foreign persons may now qualify to be beneficiaries of an ESBT, without terminating the elections. The Act also makes a change in determining the deductible amount of charitable contributions that may be recognized by ESBTs. Other provisions affecting pass through entities include: 1. Treatment of sales of partnership interests by foreign persons are now treated as income effectively connected with a U.S. trade of business, making gains on the sale taxable for them, and subject to income tax withholding requirements. 2. Rules that caused a partnership to file two tax returns for a year in which 50% or more of its interests were sold have been repealed. Now one return is filed to cover the period. 3. Carried interest rules were modified to require a holding period of three years before beneficial capital gain treatment can be earned. 4. A partner s deductions for foreign taxes paid and charitable contributions are now subject to the same basis requirements as other deductions of the partnership. COMPENSATION AND BENEFITS: Qualified Bicycle Commuting: The Act suspends the provision allowing employers to provide tax free reimbursement to employees for bicycle commuting costs of up to $20 per month. The exemption is restored in Recharacterization of Roth Conversions: Beginning in 2018, a taxpayer will not be allowed to unwind Roth conversions. Previously, a taxpayer had until the due date of his/her tax return to revisit the transaction and undo it. Affordable Care Act Individual Mandate: One of the key components of the Affordable Care Act was a penalty imposed on individuals that did not obtain health insurance. The Act eliminates this penalty. Relief for 2016 Disaster Areas: The Act provides an exception to the 10% premature retirement plan withdrawal penalty, and related plan penalties, if made due to a qualified 2016 disaster. The Act also made changes to: 1. Retirement Plan loan rollover provisions, allowing additional time for loans to be repaid 2. Allowable deductions for compensation paid by publically held companies 3. Provide employees of startup entities a deferral period before recognizing income when receiving qualified equity grants 10

11 TAX EXEMPT ORGANIZATIONS: Compensation: Beginning in 2018, the Act imposes a 21% excise tax on an applicable organization s compensation paid to any of its highest five paid employees, if in excess of $1 million. Unrelated Business Taxable Income: Two changes were made in the computation of UBTI beginning in Certain employee fringe benefits must now be included in the computation. This may include transportation benefits, parking, and access to sporting events. Also, organizations now will not be permitted to net losses in one unelated business activity against profits in others. OTHER AREAS: Significant changes were made that will affect taxes paid by multinational corporations. Also, changes were made affecting excise taxes for various producers of alcoholic beverages. Both of these areas are beyond the scope of discussion in this document. We hope you have found this informative and helpful. We at Nathan Wechsler & Company will be working to implement the changes in the most favorable light for you. Please contact us with any questions. Nathan Wechsler & Company Professional Association 11

Tax Cuts and Jobs Act 2017 HR 1

Tax 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 information

The Tax Cuts and Jobs Act of 2017

The 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 information

Corporate and Business Provision House Bill (HR 1) Senate Bill Final Bill

Corporate 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 information

Tax Cuts and Jobs Act

Tax Cuts and Jobs Act Tax Cuts and Jobs Act An Overview of Provisions of Tax Cuts and Jobs Act Prepared by The Modrall Sperling Tax Group 500 Fourth Street Suite 1000 Albuquerque, NM 87102 505.848.1800 TABLE OF CONTENTS PAGE

More information

Integrity Accounting

Integrity 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 information

TAX CUTS AND JOBS ACT SUMMARY

TAX 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 information

Highlights of the Senate Tax Cuts and Jobs Act

Highlights 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 information

Tax Cuts and Jobs Act of 2017 (TCJA) Key Individual Tax Provisions

Tax 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 information

TAX UPDATE TAX CUTS & JOBS ACT (2018) Add l Elderly & Blind Joint & Surviving Spouse: $1,300

TAX 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 information

TAX CUTS AND JOBS ACT OF 2017

TAX 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 information

TAX CUTS AND JOBS ACT EXECUTIVE SUMMARY

TAX CUTS AND JOBS ACT EXECUTIVE SUMMARY TAX CUTS AND JOBS ACT EXECUTIVE SUMMARY Mariner Retirement Advisors INDIVIDUAL INCOME TAX CHANGES Individual Income Tax Rates Single - 10%, 15%, 25%, 28%, 33%, 35%, 39.6%. Top rate begins at income over

More information

Tax Cuts and Jobs Act Table of Contents

Tax Cuts and Jobs Act Table of Contents Tax Cuts and Jobs Act Table of Contents Tax Cuts and Jobs Act... 1 Comprehensive Tax Reform... 5 House Bill... 5 Standard Deduction and Personal Exemptions... 5 Individual Tax Rates and Brackets... 6 Kiddie

More information

Tax Cuts and Jobs Act. Archie Macias Macias Tax Service

Tax Cuts and Jobs Act. Archie Macias Macias Tax Service Tax Cuts and Jobs Act Archie Macias Macias Tax Service Overview Business-related Tax Law Changes Pass-Through Entities Individual Changes Business-related Tax Law Changes Corporate tax rates Cost recovery

More information

Tax Update: Legislative Developments and Tax Planning for Law Firms and Attorneys

Tax 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 information

D e c e m b e r

D e c e m b e r P I E C E S O F T H E P U Z Z L E D e c e m b e r 2 0 1 7 2 0 1 7 T a x R e f o r m : I n d i v i d u a l T a x C h a n g e s i n t h e T a x C u t s a n d J o b s A c t On December 22, 2017, the Tax Cuts

More information

Impact of 2017 Tax Act on Individuals. From The Editors

Impact 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 information

Tax 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 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 information

November 6, Comprehensive Tax Reform Proposal Released HR1 Tax Cuts and Jobs Bill, November 2,

November 6, Comprehensive Tax Reform Proposal Released HR1 Tax Cuts and Jobs Bill, November 2, November 6, 2017 Comprehensive Tax Reform Proposal Released... 2 HR1 Tax Cuts and Jobs Bill, November 2, 2017... 2 2017 Loscalzo Institute, a Kaplan Company Current Federal Tax Developments 2 Comprehensive

More information

Individual Provisions Under the Tax Cuts and Jobs Act Compared to Previous Tax Law

Individual 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 information

20% maximum corporate tax rate. 25% maximum rate for personal service corporations.

20% 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 information

Tax Cuts and Jobs Act of 2017

Tax 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 information

Biggest tax bill in 30+ years redefines tax landscape

Biggest 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 information

What the Tax Reform Act Means for You

What the Tax Reform Act Means for You What the Tax Reform Act Means for You Congress has passed a tax reform act that will take effect in 2018, ushering in some of the most significant tax changes in three decades. There are a lot of changes

More information

TAX REFORM Summary of key provisions in the Tax Cuts and Jobs Act

TAX REFORM Summary of key provisions in the Tax Cuts and Jobs Act TAX REFORM Summary of key provisions in the Tax Cuts and Jobs Act ksmcpa.com/taxreform Keeping Current With U.S. Tax Reform In the most sweeping overhaul of the U.S. tax code in more than three decades,

More information

Individual Taxes. TAX CUTS & JOBS ACT OF Tax Brackets: 7 Tax Brackets: 7 Tax Brackets: 4 Tax Brackets:

Individual 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 information

Head 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

Head 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 information

News. Tax Cuts and Jobs Act

News. Tax Cuts and Jobs Act News Release Date: 12/26/17 Cross References H.R. 1 Tax Cuts and Jobs Act On December 22, 2017 the President signed into law H.R. 1 (officially titled An Act to Provide for Reconciliation Pursuant to Titles

More information

Tax Update for 2018 and 2019

Tax 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 information

Tax Cuts and Jobs Act Summary of Select Provisions

Tax Cuts and Jobs Act Summary of Select Provisions Tax Cuts and Jobs Act Summary of Select Provisions Updated January 3, 2018 Retirement Provisions Pre-tax elective deferral limit Hardship distributions Eligible employees may contribute up to $18,500 per

More information

TAX CUTS AND JOBS ACT

TAX 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 information

ESTIMATED KANSAS IMPACT OF THE FEDERAL TAX CUTS AND JOBS ACT

ESTIMATED 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 information

Business Tax. Pass-Through Entities. New 20% Deduction

Business Tax. Pass-Through Entities. New 20% Deduction Business Tax Pass-Through Entities New 20% Deduction For tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, taxpayers who have domestic qualified business income (QBI) from a partnership,

More information

Government Affairs. The White Papers TAX REFORM.

Government 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 information

INCOME TAX PLANNING FOR INDIVIDUALS, TRUSTS AND ESTATES: EFFECTS OF THE TAX CUTS AND JOBS ACT (TCJA)*

INCOME TAX PLANNING FOR INDIVIDUALS, TRUSTS AND ESTATES: EFFECTS OF THE TAX CUTS AND JOBS ACT (TCJA)* INCOME TAX PLANNING FOR INDIVIDUALS, TRUSTS AND ESTATES: EFFECTS OF THE TAX CUTS AND JOBS ACT (TCJA)* Vance Maultsby, CPA Huselton, Morgan & Maultsby, P.C. October 4, 2018 Dallas Estate Planning Council

More information

Individual 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 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 information

TAX CUTS AND JOB ACT OF 2017 Highlights

TAX 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 information

Tax Reform: What Dealers Need to Know

Tax Reform: What Dealers Need to Know Tax Reform: What Dealers Need to Know 1 Disclosure To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication is not intended or written

More information

NATIONAL 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 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 information

Here are some of the key items in the tax reform bill that affect individuals:

Here are some of the key items in the tax reform bill that affect individuals: Tax Cuts and Jobs Act: What the Tax Reform Bill Means for You Congress has passed tax reform that will take effect in 2018, ushering in some of the most significant tax changes in three decades. There

More information

TAX CUTS AND JOBS ACT 2017

TAX CUTS AND JOBS ACT 2017 TAX CUTS AND JOBS ACT 2017 Individual tax changes Old law New law Code Section Effective date * Tax brackets (7) 10%-39.6% Tax brackets (7) 10%-37% 1(j)(1) &(2); brackets adjust for post 2018 inflation.

More information

Tax Cuts and Jobs Act Key Implications for Individuals

Tax 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 information

2018 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, 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 information

HIGHLIGHTS OF TAX CUTS AND JOBS ACT OF 2017

HIGHLIGHTS 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 information

N/A. Kiddie Tax Various bracket thresholds Ordinary and capital gains rates applicable to trusts and estates

N/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 information

Key Provisions of 2017 Tax Reform

Key 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 information

Tax Cuts and Jobs Act of 2017

Tax 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 information

Taxpayers may recharacterize contributions to one type of IRA (traditional or Roth) as a contribution to the other type of IRA.

Taxpayers 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 information

Tax Genius. limiting total contribution deductions to 50% of AGI was increased to 60%, allowing a slightly larger deduction in some cases.

Tax Genius. limiting total contribution deductions to 50% of AGI was increased to 60%, allowing a slightly larger deduction in some cases. Tax Genius 2018 Pocket Tax Guide Online Edition It has been a busy time for tax-related news and upcoming changes. We have compiled many of the tax changes, deductions and tax rates for easy reference

More information

What's in the Tax Agreement for Individuals?

What'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 information

Business Tax Provisions

Business Tax Provisions On December 22, 2017, President Trump signed the Tax Jobs and Cuts Act of 2017 (the Act). This will be the biggest tax overhaul in 30 years. The provisions below affect all entities from individuals to

More information

Tax Cuts and Jobs Act February 8, 2018

Tax 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 information

The Tax Cuts and Jobs Act (TCJA) Tax Reform for Individuals. PREPARED BY Gary L. Riedlinger, CPA,PFS and Yeo & Yeo s Tax Services Group

The Tax Cuts and Jobs Act (TCJA) Tax Reform for Individuals. PREPARED BY Gary L. Riedlinger, CPA,PFS and Yeo & Yeo s Tax Services Group The Tax Cuts and Jobs Act (TCJA) Tax Reform for Individuals PREPARED BY Gary L. Riedlinger, CPA,PFS and Yeo & Yeo s Tax Services Group January 11, 2018 Individual Rates sunset on 12/31/25 Rate Taxable

More information

What the Tax Reform Act Means for You

What the Tax Reform Act Means for You 45100 Sterritt Street Suite 200 Utica, Michigan 48317-5843 (586) 254-2010 Fax (586) 254-4856 general@moceri-cpa.net Joseph P. Moceri, C.P.A. Michael Kramer, C.P.A. Ann Walsh, C.P.A. Ann Marie Mechail,

More information

Tax 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 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 information

Brackets (seven) - Taxable Income Single Filers. Between $9,525 and $38,700. Between $2,550 and $9,150. Between $157,500 and $200,000

Brackets (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 information

SPECIAL REPORT. Tax Law Essentials. Brought to you by Mercer Advisors

SPECIAL 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 information

Individual Provisions page 2. New Deduction for Pass-through Income page 5. Corporate (and Other Business) Provisions page 6

Individual 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 information

TAX REFORM CORPORATE & BUSINESS

TAX REFORM CORPORATE & BUSINESS The following chart sets forth some of the provisions affecting businesses 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 information

LAST CHANCE TO REDUCE 2018 INCOME TAXES

LAST CHANCE TO REDUCE 2018 INCOME TAXES LAST CHANCE TO REDUCE 2018 INCOME TAXES Presented by: James J. Holtzman, CFP Wealth Advisor and Shareholder with Legend Financial Advisors, Inc. JAMES J. HOLTZMAN, CFP James J. Holtzman, CFP, is a Wealth

More information

TAX CUTS AND JOBS ACT. National Economic Council

TAX CUTS AND JOBS ACT. National Economic Council TAX CUTS AND JOBS ACT National Economic Council December 18, 2017 Massive Tax Cuts and Reforms The TCJA provides $5.5 trillion of tax cuts Nearly 60% of these cuts go to families, not corporations The

More information

2017 Income Tax Developments

2017 Income Tax Developments 2017 Income Tax Developments Presented To: Delaware Tax Institute Presented by: Karly A. Laughlin, CPA Manager Tax & Small Business www.belfint.com Researched & Compiled by: Michael D. Kelly, CPA 302.573.3955

More information

Business Provisions Under the Tax Cuts and Jobs Act Compared to Previous Tax Law

Business Provisions Under the Tax Cuts and Jobs Act Compared to Previous Tax Law Tax Rates Corporate tax rate Top rate of 35 percent Flat rate of 21 percent (effective 1/1/2018) Alternative minimum tax (AMT) 20 percent Repealed; AMT credits refundable from 2018 through 2021 (1) Personal

More information

KEY PROVISIONS OF THE TAX CUTS AND JOBS ACT (TCJA) OF 2017

KEY 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 information

TAX REFORM CORPORATE & BUSINESS

TAX 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 information

Overview of the Tax Cuts and Jobs Act

Overview of the Tax Cuts and Jobs Act Overview of the Tax Cuts and Jobs Act Changes to the tax laws affecting individuals for this filing season. Basics for Individuals and Families As part of our client and community outreach we have prepared

More information

The Tax Cuts and Jobs Act Impact on Individual Taxpayers

The 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 information

COMPARISON 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 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 information

Tax 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 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 information

Breaking Down the Tax Cuts & Jobs Act of COPYRIGHT 2018 Bowles Rice LLP

Breaking 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 information

A Whole New Ballgame: How Tax Reform Will Affect Individuals and Businesses Tax Reform Guide.

A Whole New Ballgame: How Tax Reform Will Affect Individuals and Businesses Tax Reform Guide. 2018 Tax Reform Guide A Whole New Ballgame: How Tax Reform Will Affect Individuals and Businesses Copyright 2018 Adam Shay CPA, PLLC. All rights reserved. A Whole New Ballgame: How Tax Reform Will Affect

More information

A Whole New Ballgame: How Tax Reform Will Affect Dentists Tax Reform Guide.

A Whole New Ballgame: How Tax Reform Will Affect Dentists Tax Reform Guide. 2018 Tax Reform Guide A Whole New Ballgame: How Tax Reform Will Affect Dentists Copyright 2018 Adam Shay CPA, PLLC. All rights reserved. A Whole New Ballgame: How Tax Reform Will Affect Dentists For most

More information

5/29/ TAX CUTS AND JOBS ACT OVERVIEW. Individual Tax. Introduction-Individual Provisions. Dauphin County Bar Association May 30, 2018

5/29/ 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 information

Gerety & Associates. Certified Public Accountants. December 2017 Tax Reform Summary

Gerety & Associates. Certified Public Accountants. December 2017 Tax Reform Summary Gerety & Associates Certified Public Accountants 6817 S. Eastern Avenue, Suite 101 Las Vegas, Nevada 89119-4684 Phone: 702-933-2213 Fax: 702-933-2214Website: www.geretycpa.com December 2017 Tax Reform

More information

Tax Cuts and Jobs Act of 2017 (TCJA) Key Individual Tax Provisions. 151(d) The deduction for personal exemptions is eliminated.

Tax Cuts and Jobs Act of 2017 (TCJA) Key Individual Tax Provisions. 151(d) The deduction for personal exemptions is eliminated. Income Tax Rates and Exemptions Tax Rates and Brackets Key Individual Tax Provisions Quickfinder 1(j) 2018 2025 The following seven tax brackets apply for individuals: 10%, 12%, 22%, 24%, 32%, 35% and

More information

HOW THE TAX CUTS AND JOBS ACT AFFECTS YOU

HOW THE TAX CUTS AND JOBS ACT AFFECTS YOU HOW THE TAX CUTS AND JOBS ACT AFFECTS YOU I. New Opportunities for Estate Planning and Gifting The doubling of the estate, gift, and GST tax exemptions to $11.18 million per person ($22.36 million per

More information

Tax Cuts and Jobs Act

Tax 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 information

ROBINSON, FARMER, COX ASSOCIATES

ROBINSON, 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 information

Businesses. Provision Corporate income Eight brackets with a 35% top rate. 21% flat rate

Businesses. 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 information

For Better or Worse? Individual, Estate, and Presented Trust by: Taxes Under the New Tax Reform [Date] Act

For 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 information

TAX REFORM INDIVIDUALS

TAX 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 information

Tax Reform The Tax Cuts and Jobs Act March 2, 2018

Tax 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 information

2017 TAX CUTS AND JOBS ACT

2017 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 information

Navigating 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) 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

Dear Client: Basic Numbers You Need to Know

Dear Client: Basic Numbers You Need to Know Dear Client: As 2013 draws to a close, there is still time to reduce your 2013 tax bill and plan ahead for 2014. This letter highlights several potential tax-saving opportunities for you to consider. I

More information

2018 Year-End Tax Planning for Individuals

2018 Year-End Tax Planning for Individuals 2018 Year-End Tax Planning for Individuals There is still time to reduce your 2018 tax bill and plan ahead for 2019 if you act soon. This letter highlights several potential tax-saving opportunities for

More information

ESTIMATED REVENUE EFFECTS OF THE "TAX CUTS AND JOBS ACT," AS PASSED BY THE SENATE ON DECEMBER 2, Fiscal Years [Billions of Dollars]

ESTIMATED REVENUE EFFECTS OF THE TAX CUTS AND JOBS ACT, AS PASSED BY THE SENATE ON DECEMBER 2, Fiscal Years [Billions of Dollars] JOINT COMMITTEE ON TAXATION December 6, 2017 JCX-63-17 ESTIMATED REVENUE EFFECTS OF THE "TAX CUTS AND JOBS ACT," AS PASSED BY THE SENATE ON DECEMBER 2, 2017 Fiscal Years 2018-2027 [Billions of Dollars]

More information

TAX CUTS AND JOBS ACT OF 2017 (TCJA) and Its Potential Impact

TAX 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 information

Today s Outline. Tax Cuts and Jobs Act of 2017

Today s Outline. Tax Cuts and Jobs Act of 2017 Today s Outline Tax Cuts and Jobs Act of 2017 I. Introduction and Background II. Individual Income Tax III. Business Tax IV. Employment, Compensation and Retirement V. Tax-Exempt Organization VI. Estate

More information

TAX CUTS AND JOBS ACT

TAX CUTS AND JOBS ACT TAX CUTS AND JOBS ACT Public Law 115-97 December 22, 2017 TABLE OF CONTENTS BUSINESS PROVISIONS... 1-5 C CORPORATION TAX RATES REDUCED... 1 DIVIDENDS-RECEIVED DEDUCTION... 1 ALTERNATIVE MINIMUM TAX REPEALED

More information

Federal Update: The Tax Cuts and Jobs Act of 2017 As Enacted

Federal Update: The Tax Cuts and Jobs Act of 2017 As Enacted Federal Update: The Tax Cuts and Jobs Act of 2017 As Enacted Preliminary Estimates ($000s) Individual Income Tax ($6,380) $163,980 $194,920 $258,020 Property Tax Refund $0 $0 $84,410 $84,830 Unrelated

More information

Copyright 2017 AICPA Unauthorized Copying Prohibited TAX REFORM

Copyright 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 information

Individual income tax provision highlights

Individual 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 information

TAX REFORM INDIVIDUALS

TAX 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 information

TAX CUTS AND JOBS ACT (INCLUDING RECENT IRS GUIDANCE)

TAX CUTS AND JOBS ACT (INCLUDING RECENT IRS GUIDANCE) TAX CUTS AND JOBS ACT (INCLUDING RECENT IRS GUIDANCE) INTRODUCTION The Tax Cuts and Jobs Act (TCJA) signed into law in late 2017 represents the most substantial tax reform legislation since 1986, and most

More information

I TAX REFORM FOR INDIVIDUALS

I TAX REFORM FOR INDIVIDUALS I TAX REFORM FOR INDIVIDUALS A. Simplification and Reform of Rates, Standard Deductions, and Exemptions 1. Reduction and simplification of individual income tax rates and modification of inflation adjustment

More information

KEY PROVISIONS IN H.R. 1 (FORMERLY KNOWN AS THE TAX CUTS AND JOBS ACT 1 ) as passed by the House and Senate on December 20, 2017

KEY PROVISIONS IN H.R. 1 (FORMERLY KNOWN AS THE TAX CUTS AND JOBS ACT 1 ) as passed by the House and Senate on December 20, 2017 KEY PROVISIONS IN H.R. 1 (FORMERLY KNOWN AS THE TAX CUTS AND JOBS ACT 1 ) as passed by the House and Senate on December 20, 2017 Sections Individual Tax Rates, Deductions, and Credits... 1 Retirement Plans,

More information

Tax Reform Legislation: Changes, Impacts, Planning Considerations

Tax Reform Legislation: Changes, Impacts, Planning Considerations The following information and opinions are provided courtesy of Wells Fargo Bank N.A. Wealth Planning Update Tax Reform Legislation:, s, JANUARY 2018 Jay Messing, CFA, CFP Sr. Director of Planning Wells

More information

*187171* Before you complete this schedule, read the instructions which are on a separate sheet.

*187171* Before you complete this schedule, read the instructions which are on a separate sheet. *187171* 2018 Schedule M2SBNC, Federal Adjustments Minnesota has not adopted the federal law changes enacted after December 16, 2016 that affect federal taxable income for tax year 2018. Tax year beginning,

More information

Adam Williams. Anthony Licavoli. Principal Tax Manager

Adam 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 information

TAX 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 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 information