The new tax law is the biggest federal tax law change in more than three decades. If reading through legislation isn’t your idea of a good time, count on Wymer Brownlee to help make it less taxing.
The new laws have implications for individuals and businesses, and changes are effective for tax years beginning after Dec. 31, 2017 unless otherwise noted. Among the changes are the following updates that impact many Wymer Brownlee clients.
Changes for Individuals:
- The standard deduction doubles, and personal exemption deductions are suspended.
- Effective for 2019, the shared responsibility payment under the Affordable Care Act for not having minimum essential health insurance coverage is zero.
- The Child Tax Credit increased to $2,000 per qualifying child, and the phase-out threshold increased.
Changes for Businesses:
- All taxable income of a C corporation is taxed at a flat rate of 21%.
- Special (bonus) depreciation is increased to 100% of property acquired and placed in service after Sept. 27, 2017, with a new phase-down schedule for years after 2022. The new law allows for both new and used property.
- The Section 179 deduction is increased to $1,000,000, and the phase-out threshold amount increased to $2,500,000.
Tax planning and preparation play a critical role in the long-term success of your financial plan. Talk to your tax advisor about how to seize new opportunities and minimize tax liabilities in 2018.
Want to learn more? Download a cheat sheet of important changes in the new tax law.
Category: Tax and Accounting Team