Tax Reform Law

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Type your paragraph here.

Individual Tax Changes

Tax rates: The new law lowers tax rates for individuals and adjusts the bracket amounts. For 2018 through 2025, the tax rates are 10%; 12%, 22%; 24%; 32%; 35% and 37%. In addition, a chain CPI index will be used for future indexing, thereby reducing the size of annual adjustments.

Standard deductions: The standard deduction is effectively doubled to $12,000 for single filers and $24,000 for joint filers, while the additional standard deductions for the elderly and blind are retained.

Personal exemptions: Personal exemptions, including exemptions available for qualified for dependent children and relatives, are repealed. Accordingly, the personal exemption phase out (PEP) rule also goes away.

Alternative minimum tax: The alternative minimum tax (AMT) system is retained, but exemption amounts, as well as the thresholds for phasing out exemptions, are significantly increased. In addition, these figures will be indexed for inflation in future years.

Child tax credit: The child tax credit (CTC) is doubled from $1,000 per qualified child to $2,000, subject to a phase-out for high-income taxpayers. Under a late amendment, $1,400 of this credit is refundable. In addition, the new law creates a $500 nonrefundable credit for non-child dependents.

State and local taxes: In a controversial provision, the TCJA limits the deduction for state and local income taxes (SALT) to $10,000 annually for any combination of state and local property taxes or (2) state and local income taxes or sales taxes.


Mortgage interest: Although deductions for prior debt is grandfathered, the new law limits the mortgage interest deduction to interest paid on the first $750,000 of acquisition debt, down from $1 million. It also eliminates deductions for interest paid on home equity debt.

Medical expenses: While other itemized deductions are eliminated or scaled back, the deduction for medical expenses is temporarily improved. For 2017 and 2018, the threshold for deducting medical expenses reverts to 7.5% of AGI, the threshold in effect prior the law prior to the Affordable Care Act (ACA).

Casualty and theft losses: This itemized deduction is eliminated, but it is preserved, with certain modifications, for losses incurred in federal disaster areas.

Section 529 plans: The list of qualified expenses for Section 529 plans is expanded to include tuition at an elementary or secondary public, private or religious school, plus home schooling expenses, for up to $10,000 per year.

Roth IRAs: The rule permitting taxpayers to recharacterize a Roth IRA back into a traditional IRA after a conversion is repealed. 

Health insurance: The new law repeals the health insurance mandate for individuals established by the ACA. This change doesn’t take effect until 2019.

Estate tax: The federal estate tax exemption is doubled, resulting in an inflation-indexed exemption of $11.2 million in 2018.


President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Tax Reform Law

The IRS continues to warn consumers to guard against scam phone calls from thieves intent on stealing their money or their identity. Criminals pose as the IRS to trick victims out of their money or personal information. Here are several tips to help you avoid being a victim of these scams:

Scammers make unsolicited calls.  Thieves call taxpayers claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via phishing email.

Callers try to scare their victims.  Many phone scams use threats to intimidate and bully a victim into paying. They may even threaten to arrest, deport or revoke the license of their victim if they don’t get the money.

Scams use caller ID spoofing.  Scammers often alter caller ID to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.

Cons try new tricks all the time.  Some schemes provide an actual IRS address where they tell the victim to mail a receipt for the payment they make. Others use emails that contain a fake IRS document with a phone number or an email address for a reply. These scams often use official IRS letterhead in emails or regular mail that they send to their victims. They try these ploys to make the ruse look official.

Scams cost victims over $23 million.  The Treasury Inspector General for Tax Administration, or TIGTA, has received reports of about 736,000 scam contacts since October 2013. Nearly 4,550 victims have collectively paid over $23 million as a result of the scam.

The IRS will not:

Call you to demand immediate payment. The IRS will not call you if you owe taxes without first sending you a bill in the mail.

Demand that you pay taxes and not allow you to question or appeal the amount you owe.

Require that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card.

Ask for your credit or debit card numbers over the phone.

Threaten to bring in police or other agencies to arrest you for not paying.

If you don’t owe taxes, or have no reason to think that you do:

Do not give out any information. Hang up immediately.

Tax Reform Law

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Health Insurance

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Tax Reform Law

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Tax Reform Law

SERVICES

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Business Tax Provisions

Unlike the individual tax provisions in the new law, the key provisions relating to businesses are generally permanent. Following is a brief rundown.

Corporate tax rates: The corporate tax rate structure, which features a top rsate of 35%, is replaced with a flat 21% rate.

Pass-through entities: Under the new law, pass-through entities -- such as partnerships, S corporations, limited liability companies (LLCs) and sole proprietors -- can claim a 20% deduction on earnings, subject to special rules restrictions. The deduction is not available to higher-income personal service providers.

Section 179 deduction: The new law doubles the maximum Section 179 “expensing” allowance from $500,000 to $1 million. It also increases the phaseout threshold for Section 179 deductions from $2 million to $2.5 million. 

Bonus depreciation: Similarly, the new law doubles the first-year “bonus depreciation deduction” from 50% to 100%, but phases it out after five years. The deduction generally won’t be available after 2026.

Luxury car rules: The new law raises the caps on depreciation deductions allowed under the “luxury car” rules for passenger vehicles for which bonus depreciation is not claimed.

Section 199 deductions: The new law repeals the deduction for qualified domestic production activities previously allowed under Section 199 of the tax code.

Corporate AMT: Unlike the individual AMT, the corporate version of the AMT is completely repealed.


Entertainment deductions: The deduction for business-related entertainment is repealed. Businesses can still generally deduct 50% of the cost of qualified meals.

Interest deductions: Deductions for business interest expenses are capped at 30% of AGI, subject to certain special rules. However, a small business with average gross receipts of $15 million or less for the past three years is exempt.

Foreign taxes: A one-time repatriation tax of 15.5% for liquid assets and 8.0 percent for illiquid assets is imposed on earnings from overseas. Furthermore, a complex new system for international taxation is being implemented.

 


Reminder: This is just the tip of the iceberg. The new tax reform law includes numerous other changes that will affect individuals and businesses. More details are coming in future.

Tax Reform Law

Tax Reform Law

Tax Reform Law

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Tax Reform Law

Tax Reform Law

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

Health Insurance does effect your tax return, there are penalties if you do not have insurance and are not exempt. 

Tax Reform Law

Tax Reform Law


IRS Urges Public to Stay Alert for Scam Phone Calls

Business Tax Provisions

Unlike the individual tax provisions in the new law, the key provisions relating to businesses are generally permanent. Following is a brief rundown.

Corporate tax rates: The corporate tax rate structure, which features a top rsate of 35%, is replaced with a flat 21% rate.

Pass-through entities: Under the new law, pass-through entities -- such as partnerships, S corporations, limited liability companies (LLCs) and sole proprietors -- can claim a 20% deduction on earnings, subject to special rules restrictions. The deduction is not available to higher-income personal service providers.

Section 179 deduction: The new law doubles the maximum Section 179 “expensing” allowance from $500,000 to $1 million. It also increases the phaseout threshold for Section 179 deductions from $2 million to $2.5 million. 

Bonus depreciation: Similarly, the new law doubles the first-year “bonus depreciation deduction” from 50% to 100%, but phases it out after five years. The deduction generally won’t be available after 2026.

Luxury car rules: The new law raises the caps on depreciation deductions allowed under the “luxury car” rules for passenger vehicles for which bonus depreciation is not claimed.

Section 199 deductions: The new law repeals the deduction for qualified domestic production activities previously allowed under Section 199 of the tax code.

Corporate AMT: Unlike the individual AMT, the corporate version of the AMT is completely repealed.


Entertainment deductions: The deduction for business-related entertainment is repealed. Businesses can still generally deduct 50% of the cost of qualified meals.

Interest deductions: Deductions for business interest expenses are capped at 30% of AGI, subject to certain special rules. However, a small business with average gross receipts of $15 million or less for the past three years is exempt.

Foreign taxes: A one-time repatriation tax of 15.5% for liquid assets and 8.0 percent for illiquid assets is imposed on earnings from overseas. Furthermore, a complex new system for international taxation is being implemented.

 


Reminder: This is just the tip of the iceberg. The new tax reform law includes numerous other changes that will affect individuals and businesses. More details are coming in future.

Tax Reform Law

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.

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313-581-8210

Business Tax Provisions

Unlike the individual tax provisions in the new law, the key provisions relating to businesses are generally permanent. Following is a brief rundown.

Corporate tax rates: The corporate tax rate structure, which features a top rsate of 35%, is replaced with a flat 21% rate.

Pass-through entities: Under the new law, pass-through entities -- such as partnerships, S corporations, limited liability companies (LLCs) and sole proprietors -- can claim a 20% deduction on earnings, subject to special rules restrictions. The deduction is not available to higher-income personal service providers.

Section 179 deduction: The new law doubles the maximum Section 179 “expensing” allowance from $500,000 to $1 million. It also increases the phaseout threshold for Section 179 deductions from $2 million to $2.5 million. 

Bonus depreciation: Similarly, the new law doubles the first-year “bonus depreciation deduction” from 50% to 100%, but phases it out after five years. The deduction generally won’t be available after 2026.

Luxury car rules: The new law raises the caps on depreciation deductions allowed under the “luxury car” rules for passenger vehicles for which bonus depreciation is not claimed.

Section 199 deductions: The new law repeals the deduction for qualified domestic production activities previously allowed under Section 199 of the tax code.

Corporate AMT: Unlike the individual AMT, the corporate version of the AMT is completely repealed.


Entertainment deductions: The deduction for business-related entertainment is repealed. Businesses can still generally deduct 50% of the cost of qualified meals.

Interest deductions: Deductions for business interest expenses are capped at 30% of AGI, subject to certain special rules. However, a small business with average gross receipts of $15 million or less for the past three years is exempt.

Foreign taxes: A one-time repatriation tax of 15.5% for liquid assets and 8.0 percent for illiquid assets is imposed on earnings from overseas. Furthermore, a complex new system for international taxation is being implemented.

 


Reminder: This is just the tip of the iceberg. The new tax reform law includes numerous other changes that will affect individuals and businesses. More details are coming in future.

President Donald Trump signed the 2018 tax reform law into effect on Friday morning at the White House. While the bill was still in the House, President Donald Trump said he wanted to enact the new tax reform law before Christmas. Then, after the law passed both the House and Senate, there was discussion about holding off the signing until the first week in January. The President said he decided to stick by his Christmas pledge.

This sweeping overhaul of the tax code – the largest in more than three decades -- is the signature legislation of the first year of his administration.

Generally, the provisions in the TCJA take effect on January 1, 2018. Most of the provisions affecting individuals are temporary and “sunset” after 2025, while the majority of business provisions are permanent. Following is a rundown on some of the key changes for your clients. Most individual taxpayers will not see the changes until it affects their paycheck tax withholding, likely in February. The reform affects taxes for the 2018 year and beyond, starting with tax returns that must be filed by April 2019.Type your paragraph here.