HOW NEW TAX LAW DOUBLES ESTATE & GIFT TAX EXEMPTION
Posted by Kim Chen on February 22nd, 2018
I am writing to inform you about changes to the estate and gift tax exemption made by the massive Tax Cuts and Jobs Act effective beginning in 2018 that will result in many fewer estates being subject to the 40% tax, and larger estates owing less tax. Before the Tax Cuts and Jobs Act, the […]
Corporate income tax rate drops to 21%, and individual rate brackets are modified under new tax law
Posted by Kim Chen on February 14th, 2018
I am writing to inform you about changes to the individual and corporate income tax rates that take effect beginning in 2018 under the major piece of tax legislation called the Tax Cuts and Jobs Act (the Act). Rate changes for individuals. Individuals are subject to income tax on “ordinary income,” such as compensation, and […]
New 20% deduction for qualified business (pass-through) income under new tax law
Posted by Kim Chen on February 9th, 2018
I am writing to inform you of a significant new tax deduction taking effect in 2018 under the new tax law, the Tax Cuts and Jobs Act (the Act). It should provide a substantial tax benefit to individuals with “qualified business income” from a partnership, S corporation, LLC, or sole proprietorship. This income is sometimes […]
$10,000 limit on state and local tax deduction under new tax law
Posted by Kim Chen on February 5th, 2018
I am writing to inform you about new limit placed on individuals’ itemized deductions of various kinds of nonbusiness taxes, which was made by the massive Tax Cuts and Jobs Act (the Act), effective beginning with the 2018 tax year. Before the changes were effective, individuals were permitted to claim the following types of taxes […]
TCJA greatly eases rules for bonus depreciation, Code Sec. 179 expensing and regular depreciation
Posted by Kim Chen on February 1st, 2018
The Tax Cuts and Jobs Act (TCJA) has effectively lowered the cost of acquiring capital assets by making substantial changes to the income tax rules for bonus depreciation and other “cost recovery.” There’s a lot to discuss, but please bear with me. One or more of these changes will almost surely change your tax bill. […]
