Highlights of the 2018 Tax Bill

Below, I have written a high level summary of the effect of the tax bill and included a link to my reference.

Personal Income Taxes

Lowered graduated tax rates beginning in 2018;
Doubled the standard deduction (expires after 2025);
Eliminated personal exemptions;
Retained deductions for charitable contributions, retirement savings, and student loan interest;
Limited deduction on mortgage interest;
Limited the deduction on state and local taxes to $10,000;
Expanded the deduction for medical expenses for 2017 and 2018;
Repealed the Obamacare mandate (starting in 2019);
Increased the child tax credit;
Eliminated most itemized deductions;
Created a credit for non-child dependents; and
Increased the exemption for the AMT.

Estate Taxes

Doubled the estate tax exemption.

Business Taxes

Lowered the maximum corporate tax rate;
Raised the standard deduction to 20% for pass-through businesses (expires after 2025);
Limited corporations' ability to deduct interest expense to 30% of income;
Allows businesses to deduct the cost of depreciable assets in year one;
Stiffened the requirements on carried interest profits;
Eliminated the corporate AMT;
Allowed companies to repatriate income by paying a one-time tax rate of 15.5% on cash and 8% on equipment;
Allowed oil drilling in the Arctic National Wildlife Refuge;
Retained tax credits for electric vehicles and wind farms;
Cut the deduction for orphan drug research from 50% to 25%; and
Cut taxes on beer, wine and liquor.

In summary, the tax bill is very favorable to businesses while providing moderate relief to individual taxpayers.

https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968

Disclaimer
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.