Interested in what’s happened over the last three months this year?
I’ve summarized the key tax developments that may affect you, your family, your investments, and your livelihood.
President Trump reveals tax reform plan. The Trump Administration and select members of Congress have released a “unified framework” for tax reform. This documents details a number of tax reformation changes but leaves many specifics unaddressed.
Provisions that would impact individuals include:
- A standard deduction increase to $24,000 for married taxpayers filing jointly, and $12,000 for single filers;
- Elimination of the personal exemption
- A reduction in the number of tax brackets from seven to three: 12%, 25%, and 35%;
- An increase of the child tax credit;
- Repeal the individual alternative minimum tax;
- Largely eliminate itemized deductions, but retain the home mortgage interest and charitable contribution deductions; and
- Repeal both the estate tax and the generation-skipping transfer tax
Plan provisions affecting businesses would:
- Applying a maximum 25% tax rate for “small” and family-owned businesses conducted as sole proprietorships, partnerships and S corporations;
- A reduction in the corporate tax rate to 20% (down from the current top rate of 35%);
- Provisions for full expensing for five years;
- Partial limitation of the net interest expense deduction for C corporations;
- Repeal most deductions and credits, but retain the research and low-income housing credits;
- Provide a 100% exemption for dividends from foreign subsidiaries; and
- Tax the foreign profits of U.S. multinational corporations at a reduced rate and on a global basis.
For more information on other key tax updates and how they may impact you, feel free to contact our office.