Tara stauffer, cpa Jorge pantoja Tax cuts & jobs act Tara stauffer, cpa Jorge pantoja

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Individuals:

Individuals cont. No personal exemption, previously $4,050 Standard deduction increases:

Individuals cont. Individual mandate penalty eliminated FOR YEARS STARTING 2019. Child tax credit went from $1,000 to 2,000 $1,400 refundable Phase out went from $110,000 to $400,000 $500 nonrefundable credit for qualifying dependents other than qualifying children Exemption on alternative minimum tax went from $86,200 to 109,400 joint filers Threshold went up to 1 million

Individuals itemized deductions Mortgage interest limited to $750,000 in principal value Previously 1 million until 12/14/17 Income, sales, and property taxes are now limited to $10,000 Charitable contributions are now up to 60% of adjusted gross income Deductions subject to 2% floor are gone Tax prep fees, investment fees, unreimbursed employee expenses, hobby expenses, etc.

Individuals Alimony: Meals and entertainment: Alimony payments made are not deductible Alimony payments received are not includable in income Effective for any divorce or separation instrument executed after 12/31/18 Meals and entertainment: Entertainment, amusement, or recreation are not deductible Meals are still 50% deductible

Individuals Tax deferred like-kind exchange (section 1031): Allowed for real property Disallowed for vehicles after jan 1, 2018

Business: New 20% business deduction Specific service industries excluded: health, law, professional services No c corps, only sole proprietor, partnerships, and s corps 20% of qualifying business income Phase out $157,500 for single and 315,000 for joint filers Domestic production activities deduction eliminated Corporate alternative minimum tax eliminated

Business: Depreciation on fixed assets: Section 179 went up from $500,000 to 1 million 1st year bonus depreciation: Used and new assets now can take 100% of cost place in service on or after sept/28/17 Used assets: not used before by taxpayer; not from a related party

Business: Corporate tax rate flat at 21% Net operating losses: Nol carrybacks are gone Nol carryforwards are indefinite

Work cited: (2018, April). New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act. Retrieved from www.irs.gov (2018, February). Tax Cuts and Jobs Act: Itemized Deductions. Retrieved from deandorton.com (2017, December). Preliminary Details and Analysis of the Tax Cuts and Jobs Act. Retrieved from taxfoundation.org Girouard, John (2018, April). Why Real Estate May Be A Big Winner In The Tax Cuts And Jobs Act. Retrieved from www.forbes.com