With the 2018 tax bill now in place, many of you will have questions regarding the new tax rates and deductions. As details of the new tax reform emerge, many questions remain unanswered and open to interpretation. Be sure to call us to discuss how the new law will affect your taxes.
Some of the key changes include:
- Setting a top corporate rate of 21% effective for tax years beginning in 2018
- Setting a top individual rate of 37%
- Creating a 20% deduction for pass-through income, with provisions enhancing the deduction for capital intensive and real estate businesses with low wage expense, lowering the income allowance for professional services but providing an exception for architects and engineers
- Repealing the corporate AMT
- Limiting NOL deductions to 80% of taxable income
- Retaining the individual AMT with higher exemptions and higher phase-out thresholds
- Allowing up to $10,000 in state and local income or property taxes
- Removing a provision requiring basis of stocks and other securities to be determined on a first-in, first-out method
- Retaining the estate tax with a higher exemption amount