The Tax Cuts and Jobs Act of 2017 generously increased the Lifetime Exemption for gifts from what was a $5 million base amount per person to $10 million for 2018, along with inflation-adjusted increases through 2025. But this attractive provision is due to sunset in 2026 – that is, it is set to expire on … Continued
What are they? Opportunity Zones were created by the Tax Cuts and Jobs Act of 2017 (TCJA). According to the IRS, an Opportunity Zone is “an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.” States and territories were quick to take advantage of this chance to encourage local … Continued
Executives who previously determined that private jet ownership was unaffordable may now be able to justify this purchase thanks to the Tax Cuts and Jobs Act (TCJA) signed into law in December 2017. Among other things, like more generous expensing provisions in general (see our 2018 Tax Code Review), the new tax law now allows … Continued
For starters, the new tax law changes marginal rates and income brackets. One of the most significant aspects of the Tax Cuts and Jobs Act is the change in the federal income tax brackets. While the number of brackets remains the same at seven, the top rate now tops out at 37% instead of 39.6% … Continued
Millions of Americans will be impacted by the expansion of the standard deduction and repeal of their personal exemption. With the passage of the Tax Cuts and Jobs Act, the standard deduction for single filers increases to $12,000 and to $24,000 for married couples filing jointly. Anyone age 65 and older in 2018 will continue … Continued
In a move that eases the pain of the repeal of the personal exemption, the child credit has doubled and is available to more families. If you are a parent of children under the age of 17, the expansion of the child tax credit from $1,000 to $2,000 per child could provide valuable tax savings, … Continued
Be sure to check your paycheck withholding. The new rules may bring some unwelcomed surprises if you’re not aware and planning accordingly. As a good practice, in general, employees should review the new tax withholding form and withholding calculator from the IRS to avoid unexpected surprises. Given the broad scope of the tax changes and … Continued
The new law makes few changes to investment income taxes, preserving the favorable rates for capital gains and dividends. With the implementation of the tax code overhaul by Congress, favorable rates for qualified dividends and long-term capital gains (net profits on investments held longer than one year) remain unchanged. Taxable income for: Single filers … Continued
Individuals will no longer be penalized for not having health insurance. Going away with this tax legislation is the individual mandate to have health insurance. This mandate, originally a centerpiece of the 2010 Affordable Care Act, required individuals to have health coverage that met new federal standards or pay a penalty. The law made exceptions … Continued
That pesky AMT survives the new tax legislation but will impact far fewer tax payers. Alternative minimum tax (AMT), the tax application to limit tax breaks, was on the chopping block but ultimately survived. Complex and unpredictable, the AMT ceiling was substantially raised. The good news for most current AMT payers is that they may … Continued