1. 2018 Tax law Changes

2. Individuals
Individual tax rates have been reduced approximately 2%

3. Individuals Individual tax rates have been reduced approximately 2%
7 Tax brackets retained

4. Individuals Individual tax rates have been reduced approximately 2%
7 Tax brackets retained
Personal exemptions are gone ($4,050 per person)

5. Individuals Individual tax rates have been reduced approximately 2%
7 Tax brackets retained
Personal exemptions are gone ($4,050 per person)
Child and family tax credit increased from $1,000 to $2,000 (children under 16)

6. Individuals Individual tax rates have been reduced approximately 2%
7 Tax brackets retained
Personal exemptions are gone ($4,050 per person)
Child and family tax credit increased from $1,000 to $2,000 (children under 16)
Alternative Minimum Tax still in effect but has been defanged a little

7. Individuals Individual tax rates have been reduced approximately 2%
7 Tax brackets retained
Personal exemptions are gone ($4,050 per person)
Child and family tax credit increased from $1,000 to $2,000 (children under 16)
Alternative Minimum Tax still here but has been defanged a little
State and local tax deduction – limited to $10,000

8. Individuals Individual tax rates have been reduced approximately 2%
7 Tax brackets retained
Personal exemptions are gone ($4,050 per person)
Child and family tax credit increased from $1,000 to $2,000 (children under 16)
Alternative Minimum Tax still here but has been defanged a little
State and local tax deduction – limited to $10,000
Capital gains tax rates unchanged

9. Individuals
Standard deduction has been doubled ($24,000 MFJ, $12,000 Single & MFS - $18,000 HOH)

10. Individuals
Standard deduction has been doubled ($24,000 MFJ, $12,000 Single & MFS - $18,000 HOH)
Itemized deductions subject to 2% floor eliminated (unreimbursed employee expenses, investment expenses, tax preparation fees, union dues, educator expenses, etc.)

11. Individuals
Standard deduction has been doubled ($24,000 MFJ, $12,000 Single & MFS - $18,000 HOH)
Itemized deductions subject to 2% floor eliminated (unreimbursed employee expenses, investment expenses, tax preparation fees, union dues, educator expenses, etc.)
Home equity loan interest deduction repealed

12. Individuals
Standard deduction has been doubled ($24,000 MFJ, $12,000 Single & MFS - $18,000 HOH)
Itemized deductions subject to 2% floor eliminated (unreimbursed employee expenses, investment expenses, tax preparation fees, union dues, educator expenses, etc.)
Home equity loan interest deduction repealed
Alimony paid deduction repealed (agreements executed after )

13. Individuals
Standard deduction has been doubled ($24,000 MFJ, $12,000 Single & MFS - $18,000 HOH)
Itemized deductions subject to 2% floor eliminated (unreimbursed employee expenses, investment expenses, tax preparation fees, union dues, educator expenses, etc.)
Home equity loan interest deduction repealed
Alimony paid deduction repealed (agreements executed after )
Moving expenses repealed

14. individuals
Changes made to the Roth IRA conversion rules

15. Business taxation
C Corporations taxed at flat rate of 21% - was top rate of 35%

16. Business taxation
C Corporations taxed at flat rate of 21% - was top rate of 35%
Businesses other than C corporations:
New 20% deduction of net business income

17. Business taxation
C Corporations taxed at flat rate of 21% - was top rate of 35%
Businesses other than C corporations:
New 20% deduction of net business income
Applies to sole proprietors, partnerships and S corporation, trusts and estates (passthrough entities)

18. Business taxation
C Corporations taxed at flat rate of 21% - was top rate of 35%
Businesses other than C corporations:
New 20% deduction of net business income
Applies to sole proprietors, partnerships and S corporation, trusts and estates (passthrough entities)
Business income over $415,000 (MFJ) has special rules

19. Business taxation
C Corporations taxed at flat rate of 21% - was top rate of 35%
Businesses other than C corporations:
New 20% deduction of net business income
Applies to sole proprietors, partnerships and S corporation, trusts and estates (passthrough entities)
Business income over $415,000 (MFJ) has special rules
Service business over $315,000 (MFJ) no deduction

20. Business taxation
C Corporations taxed at flat rate of 21% - was top rate of 35%
Businesses other than C corporations:
New 20% deduction of net business income
Applies to sole proprietors, partnerships and S corporation, trusts and estates (passthrough entities)
Business income over $415,000 (MFJ) has special rules
Service business over $315,000 (MFJ) no deduction
Many special rules

21. Business taxation
Bonus depreciation 100% to 2022

22. Business taxation Bonus depreciation 100% 9-27-17 to 2022
Now includes used property

23. Business taxation Bonus depreciation 100% 9-27-17 to 2022
Now includes used property
Equipment expensing election (Sec. 179) $1,000,000

24. Business taxation Bonus depreciation 100% 9-27-17 to 2022
Now includes used property
Equipment expensing election (Sec. 179) $1,000,000
Must elect out of bonus depreciation to use Sec. 179

25. Business taxation Bonus depreciation 100% 9-27-17 to 2022
Now includes used property
Equipment expensing election (Sec. 179) $1,000,000
Must elect out of bonus depreciation to use Sec. 179
Caution! Can be to much of good thing

26. Business taxation Bonus depreciation 100% 9-27-17 to 2022
Now includes used property
Equipment expensing election (Sec. 179) $1,000,000
Must elect out of bonus depreciation to use Sec. 179
Caution! Can be to much of good thing
Eligible categories have been expanded

27. Other changes
Like-kind Exchanges
Real property only

28. Other changes Like-kind Exchanges Real property only
If exchange includes land with equipment i.e. irrigation system, equipment does not qualify

29. Other changes Like-kind Exchanges Real property only
If exchange includes land with equipment i.e. irrigation system, equipment does not qualify
Trade in of equipment is a sale!

30. Other changes Like-kind Exchanges Real property only
If exchange includes land with equipment i.e. irrigation system, equipment does not qualify
Trade in of equipment is a sale!
Shouldn’t be an issue with increased limits on expensing

31. Other changes Like-kind Exchanges
Real property only
If exchange includes land with equipment i.e. irrigation system, equipment does not qualify
Trade in of equipment is a sale!
Shouldn’t be an issue with increased limits on expensing
Net Operating Loss rules have changed
No carryback (except for farmers)

32. Other changes Like-kind Exchanges
Real property only
If exchange includes land with equipment i.e. irrigation system, equipment does not qualify
Trade in of equipment is a sale!
Shouldn’t be an issue with increased limits on expensing
Net Operating Loss rules have changed
No carryback (except for farmers)
Carry forward indefinitely limited to 80% of income

33. Other changes
Losses limited to $500,000 excess carried forward

34. Tax planning
Look at bunching itemized deductions like medical expenses to get added savings

35. Tax planning
Look at bunching itemized deductions like medical expenses to get added savings
Same for State and Local taxes

36. Tax planning
Look at bunching itemized deductions like medical expenses to get added savings
Same for State and Local taxes
Use Health Savings Accounts to get better deduction

37. Tax planning
Look at bunching itemized deductions like medical expenses to get added savings
Same for State and Local taxes
Use Health Savings Accounts to get better deduction
Meet with your tax professional often to make sure you are prepared for the changes

38. Work opportunity tax credits
When ever you hire a new employee check to see if they qualify for this credit!
Veterans
Unemployed for more than 6 months