2018 Federal Tax Reform for Individuals and Business

The Tax Cuts and Jobs Act (TCJA) will bring about sweeping changes to Federal tax laws for individuals and businesses, beginning in 2018.  The members of the Bowles Rice Tax Team have compiled the following summaries to help you learn more.  Please contact us if you’d like to discuss how the many changes in the TCJA could affect your particular tax situation, and the possible planning steps you might consider in response.

• Overview of the Business Tax Changes in the Tax Cuts and Jobs Act
• Qualified Business Income (“QBI”) Deduction
• Changes to Corporate and Individual Tax Rates and Brackets
• Impact on Individuals
• Changes to the Estate and Gift Tax Exemption
• Changes to Individuals’ Itemized Deductions of Non-Business Taxes
• Changes to Alternative Minimum Tax for Corporations and Individuals
• Changes to the Tax Treatment of Alimony
• Changes to Deductions for Interest on Your Home Mortgage
• Rules Eased for Bonus Depreciation, Code Sec. 179 Expensing and Regular Depreciation
• Changes to the Rules Governing Choice of Accounting Methods by Taxpayers
• Tax Benefits for Investments in Qualified Opportunity Funds
• Changes Include New Employer Credit for Paid Family and Medical Leave
• Cuts to Individuals’ Itemized Deductions for Casualty and Theft Losses
• Changes to Child Tax Credit and New Credit for Other Dependents
• Changes to 529 Accounts for Elementary or Secondary School Tuition
• New ABLE Account Advantages
• Retirement Plan Changes
• Changes Impacting Partnerships, S Corporations and Pass-Through Income
• Impacts on Tax-Exempt Organizations

• Changes to Compensation Deductions for Excessive Employee Remuneration

• Overview of the business tax changes in the Tax Cuts and Jobs Act