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

2. Visit your cpa

3. Individuals:

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

5. 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

6. 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.

7. 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

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

9. 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

10. 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

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

12. Work cited:
(2018, April). New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act. Retrieved from
(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