2018 will bring a lot of changes to your taxes
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Some key provisions from the Tax Cuts & Jobs Act*
- New Tax Rates for individuals ranging from 10% to 37%
- Increased standard deduction ($24,000 Joint / $18,000 Head of Household / $12,000 Single
- Elimination of Personal Exemptions
- Deduction for “Qualified Business Income” – small business owners need to know about this
- State & Local tax deductions are limited to a total of $10,000
- Mortgage interest is only deductible up to $750,000 of debt
- Eliminated “Miscellaneous Itemized Deductions” – that impacts unreimbursed business expenses and many others
- Alimony is no longer deductible by the payer nor includable in income by the recipient
- Important – the “individual mandate” requiring health insurance remain in effect until 2019.
- Corporate tax rate reduced to a flat 21%
- Corporate AMT has been repealed
- Net operating losses after 2017 can only be carried forward
- Businesses with gross receipts over $25 million are limited in the amount of interest they can deduct to 30% of adjusted taxable income
- Depreciation benefits have been enhanced significantly
- Family & medical leave credit
- Elimination of the 50% deduction for business related entertainment expenses
- The domestic production activities deduction has been repealed
Start early to understand how the new tax law will impact you. We can help tailor a plan to minimize your tax liability. You can stay on top of changes coming in 2018 by visiting the IRS’s news site for tax reform.
*The information provided herein is a high level overview of the TCJA. It is not intended as individual advice nor is it all inclusive. Please contact us to find out how these changes will impact you or your organization.