HIGHLIGHTS OF TAX CUTS AND JOBS ACT     
                                                                               Individual Tax Provisions
  • Standard deduction increase - $24,000 married  and,  single $12,000.
  • Personal exemptions suspended for years 2018 - 2025.
  • Child tax credit increased to $2,000.
  • Deduction for State & Local taxes limited to $10,000 for married taxpayers, $5,000 for single taxpayers.
  • Alimony payments for divorces obtained after 12/31/2018; no longer deductible by payor, nor includable as income by payee.
  • Miscellaneous itemized deductions, subject to 2% of AGI floor, suspended for years 2018 - 2025.
  • ACA mandate repealed for years after 2018,( health insurance mandatory penalty).
  • Moving expenses deduction suspended for years 2018 to 2026.
  • Alternative Minimum Tax - increased exemption amounts, joint returns $109,400; single $70,300.

                                                                     Business and Corporate Provisions

  • Corporate tax rate for years after 12/31/2017 is a flat 21%.
  • The section 179 expensing provision is increased to $1,000,000.  This section has also been expanded to include certain personal property and certain improvements to nonresidential real property.
  • Interest expense deduction, for all businesses) is limited. The net interest expense is disallowed for amounts in excess of 30% of the business's adjusted taxable income.  This limitation is generally applied at the taxpayer level.  However, for partnerships, and S corps, it is at the entity level. 
  • Pass - through income deduction new for years 2018 to 2025.
  • The deduction is for noncorporate taxpayers for income relating to pass through business entities, i.e., partnerships, sole proprietors and S corps.
  • The deduction is generally 20% of a taxpayer's qualified business income (QBI).
  • The deduction is phased out for income from certain service oriented  businesses, e.g. law, accounting, healthcare, financial, athletics and more.

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The information contained herein comes from various sources and is designed to be accurate and authoritative on the subjects covered.  It is provided however, with the understanding that this information may not be all inclusive, and that changes occur from time to time which affect the items above..  The topics presented are not provided as specific tax advice or expert opinions, for specific questions or situations one should consult a tax professional.  The information in this site is not intended or written to be used as, and cannot be used as or considered to be, written tax advice, and should not be relied on for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein, for IRS audit, tax disputes or other purposes.