{"id":1094,"date":"2017-12-27T01:34:22","date_gmt":"2017-12-27T09:34:22","guid":{"rendered":"http:\/\/feusa.wpengine.com\/feusa\/summary-of-tax-cuts-and-jobs-act-of-2017\/"},"modified":"2017-12-27T01:34:22","modified_gmt":"2017-12-27T09:34:22","slug":"summary-of-tax-cuts-and-jobs-act-of-2017","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/estate-taxes\/summary-of-tax-cuts-and-jobs-act-of-2017\/","title":{"rendered":"Summary of Tax Cuts and Jobs Act of 2017"},"content":{"rendered":"

Highlights of recently enacted Tax Reform Bill (HR1 \u201cTax Cuts and Jobs Act of 2017\u201d)<\/h3>\n

Individuals<\/h4>\n
    \n
  1. Double the estate, GST and gift tax exemption ($5.6 million to $11.2 million, indexed for inflation) for estates of decedents dying and gifts made after December 31, 2017, and before January 1, 2026.<\/li>\n
  2. Retains seven individual income tax brackets, but at reduced rate, the highest rate (37%) begins at a taxable income threshold of $600,000 for couples who are married filing jointly, (MFJ) and $500,000 for single taxpayers, including a top marginal rate of 37 percent \u2013 though the rates sunset at the end of 2025.<\/li>\n
  3. Allows 529 plans to be used on a limited basis for private elementary and secondary education, in addition to its existing use for higher education.<\/li>\n
  4. Retains the itemized deduction for medical expenses and lowers the floor to 7.5% of AGI (from 10%) in 2017 and 2018.<\/li>\n
  5. Repeals miscellaneous itemized deductions that were subject to the 2% floor.<\/li>\n
  6. Retains the Alternative Minimum Tax (AMT), though increases the exemption to $109,400 and raises the phaseout threshold to $1 million for joint filers.<\/li>\n
  7. Increases the standard deduction to $12,000 for single filers, $18,000 for heads of household, and $24,000 for joint filers \u2013 though this also sunsets in 2025;<\/li>\n
  8. Eliminates many credits and deductions with the notable exceptions of deductions for charitable contributions, mortgage interest (lowered to a cap of $750,000 of mortgage debt), and state and local taxes (lowered to a cap of $10,000 for state and local income and property taxes);<\/li>\n
  9. Increases the child tax credit to $2,000 ($1,400 \u2013 indexed to inflation \u2013 would be refundable) through 2025.<\/li>\n
  10. Eliminates the Affordable Care Act\u2019s individual mandate penalty<\/li>\n<\/ol>\n

    Corporations<\/h4>\n
      \n
    1. 21% corporate tax rate.<\/li>\n
    2. Full and immediate expensing for certain capital expenditures for five-years, followed by a five-year phase-out.<\/li>\n
    3. A cap on the net interest deduction for larger businesses of 30% of earnings before interest, taxes, depreciation, and amortization (EBITDA) for four years and a cap of 30% of earnings before interest and taxes (EBIT) after that.<\/li>\n
    4. A shift to a territorial system of taxation.<\/li>\n
    5. A base erosion anti-abuse tax (BEAT) of 5% of modified tax liability over regular tax liability for the first year, then a rate of 10% until 2025, and then a rate of 12.5% beginning in 2026.<\/li>\n
    6. Deemed repatriation of deferred foreign profits at a rate of 15.5% for cash and cash equivalents and 8% for illiquid assets.<\/li>\n
    7. Preservation of private activity bonds (PABs).<\/li>\n
    8. Preservation of the Low-Income Housing Tax Credit (LIHTC) and (with some limitations) of the Historic Tax Credit.<\/li>\n<\/ol>\n

      Please let me know if you have any questions.<\/p>\n

      Best,<\/strong><\/em>
      \n Pat<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Highlights of recently enacted Tax Reform Bill (HR1 \u201cTax Cuts and Jobs Act of 2017\u201d) Individuals Double the estate, GST and gift tax exemption ($5.6 million to $11.2 million, indexed for inflation) for estates of decedents dying and gifts made after December 31, 2017, and before January 1, 2026. Retains seven individual income tax brackets, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[43],"tags":[50,11,5],"class_list":["post-1094","post","type-post","status-publish","format-standard","hentry","category-estate-taxes","tag-death-tax","tag-estate-tax","tag-family-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/1094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1094"}],"version-history":[{"count":0,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/1094\/revisions"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}