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Tax Cuts and Jobs Act

  • Mike Dreiling
  • Feb 15, 2018
  • 1 min read

Temporarily creates 7 new tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Increases Standard Deductions: Single $12,000, Married Filing Jointly $24,000, Head of Household $18,000.

Repeals deductions for personal exemptions.

Increases Child Tax Credit to $2,000 ($1,400 refundable), subject to phase out.

Eliminates all 2% itemized deductions (bottom of Schedule A)

Limits Itemized Deductions for non-business taxes to $10,000 for SALT (State And Local Taxes) and property taxes.

Limits home mortgage interest deduction for home loans executed after December 14, 2017 to $750,000 of acquisition indebtedness and disallows interest on home equity loans unless used to buy, build, or substantially improve the taxpayer’s home.

Enacts 20% deduction for domestic qualified business income available to individuals (sole proprietors), partners, LLC members, S corporation shareholders, trusts and estates.

Permanently enacts a flat 21% corporate tax rate.

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