| Dale K. Cline, CPA, PLLC
CERTIFIED PUBLIC ACCOUNTANT
P.O. Box 3966
Suite 101, 1333 2nd St. N.E.
Hickory, NC 28603-3966
NEW TAX LAW - "Tax Cuts And Jobs Act of 2017"
The "New Law" was signed by President Trump on December 22, 2017. It is a significant tax reform that impacts every business and individual taxpayer, generally starting in 2018 and ending after 2025. After 2025 many tax provisions of this Act will revert back to the former tax provisions. The Internal Revenue Service is now in the process of implementing this Act as we move forward into 2018.
There are more than 400 pages to this Act.
Individuals will see changes affecting tax rates as well as income threshold brackets, personal exemptions, standard deduction, credits, alimony payments, and moving expenses. Itemized deductions are changed, limited, or eliminated. Some non-taxable fringe benefits provided by employers are modified or eliminated; and it goes on and on.
Estate tax exclusion doubled from $5.49 Million in 2017 to $11.2 Million as indexed for inflation.
"C Corporations" and "Personal Service Corporations" will be taxed at a 21% Flat Rate.
Business owners of "Pass-through business entities such as proprietorships, partnerships, LLC's and S Corporations" could see a reduced tax burden due to a "20% Deduction" of qualifying income. (Specified Service Trades or Businesses/SSTB do not qualify for the "20% Deduction" unless the owner's taxable income is within certain ranges.)
Trades and or Businesses will see expanded write-offs for certain capital expenditures with bonus depreciation increasing from 50% to 100% on new and used property acquired and placed in service in the first year of acquisition.
It is important to understand that your tax liability burden has to be determined by calculating the tax with and without the impact of a particular strategy.
This selective information is not intended as a formal tax opinion and should not be relied upon without an independent, professional analysis of the facts and law applicable to any information contained herein.
Please contact us if you have questions or concerns about how this Act may affect you or visit irs.gov to view Resources for Tax Law Changes.
© 2010 Dale K. Cline, CPA, PLLC All Rights Reserved
Updated February 19, 2018