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Voices 2017 tax reform: Proposed individual tax changes in the Tax Cuts and Jobs Act

Source: accountingtoday.com - Nov 7, 2017

The Tax Cuts and Jobs Act makes major changes to individual income taxation. These include a reduction in the number of tax brackets, an increase in the standard deduction, repeal of personal exemptions, a reduced maximum rate on business income, an increase in the child tax credit and a new family tax credit, repeal of the credits for the elderly and for adoption expenses, changes to education incentives and to many deductions, including a new limit on mortgage interest, repeal of the personal casualty loss, state income and sales tax, medical expense, moving expense, tax preparation expense, and employee business expense deductions, and a dollar limit on property tax deductions.

The home sale exclusion would be tightened and phased out at higher income levels. There would be many changes to retirement plan rules. The AMT would be repealed, and the basic estate tax exclusion would be doubled and the tax repealed after 2023, with beneficiaries still getting a stepped-up basis in estate property. The Act also contains extensive changes to corporate and business taxes, foreign income and persons, and exempt organizations. The House Ways and Means Committee is marking up the bill this week and still introducing amendments and modifications. This article is based on the bill introduced last week.

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Category: General Business