Reduces the corporate tax rate from 35% to 21%;
Repeals corporate Alternative Minimum Tax (AMT);
Permits deductions for qualified business income for pass-through entities (sole proprietorships, partnerships, LLCs, and S Corporations) of up to 20%;
Almost doubles the Standard Deduction from $6,350 to $12,000 for single taxpayers, from $12,700 to 24,000 for married filing jointly and $9,350 to $18,000 for head of household;
Repeals the personal exemption for taxpayer and spouse (was $4,050 each);
Doubles the maximum child tax credit to $2,000;
Caps the State And Local Tax (SALT) deductions at $10,000, including property tax;
Increases the estate and gift tax exemption to $10,000,000 (almost twice the current amount);
Repeals the deduction for Moving expenses, except for members of the armed services;
Repeals the Affordable Care Act’s individual mandate, effectively removing the teeth from Obamacare;
Changes withholding rates and tables – The new rates are: 10%, 12%, 22%, 24%, 32%, 35%, and 37% and provide tax breaks across the board compared to the old rates which topped out at 39.6%..
Starting in February of 2018, new payroll withholding rates will give all w2 employees a fatter paycheck.
Although these rates will sunset in a few years, they can be made permanent at any time by a majority vote of the House and Senate.
CRYPTOCURRENCY and BITCOIN on your Tax Return
Make sure that you know the tax implications of trading in these new currencies. TAX DOCTOR is experienced in the trading of Block chain in all of its various forms, and the tax planning required to preserve wealth by keeping as much as possible out of the hands of Uncle Sam (legally, of course). Make an appointment today by calling 718-702-9623 and ask about CRYPTOTAX.
Tax Doctor will update you as changes get implemented. Remember, Tax Doctor does a free evaluation of your tax return(s) upon request. Our free look is free so it’s a win-win situation.
See you soon!