{"id":1133,"date":"2018-01-29T16:22:52","date_gmt":"2018-01-29T20:22:52","guid":{"rendered":"https:\/\/fluentricciardi.com\/?p=1133"},"modified":"2022-01-27T16:24:43","modified_gmt":"2022-01-27T20:24:43","slug":"president-trumps-tax-cuts-and-jobs-act","status":"publish","type":"post","link":"https:\/\/fluentricciardi.com\/president-trumps-tax-cuts-and-jobs-act\/","title":{"rendered":"President Trump\u2019s “Tax Cuts and Jobs Act”"},"content":{"rendered":"
President Trump signed the “Tax Cuts and Jobs Act” into law on Dec. 22, as noted and summarized from a report by Investopedia<\/a>. The Senate passed the bill on Dec. 20\u00a0by a party-line vote of 51 to 48. The House passed the bill later in the day by a vote of 224 to 201. No House Democrats supported the bill, and 12 Republicans voted no, most of\u00a0them representing California, New York and New Jersey. (Taxpayers who itemize and rely on the state and local tax deduction in these\u00a0high-tax states\u00a0will have their state and local tax deductions capped at $10,000 or $5,000 if Married Filing Separate). Generally speaking, some are concerned that this overhaul is forecasted\u00a0to raise the federal deficit by a significant amount, while others say the tax cuts will significantly boost the economy and produce growth across many industries.<\/p>\n <\/p>\n The law cuts corporate tax rates permanently and individual tax rates temporarily until 2025 when those individual rates would expire if they\u2019re not renewed. The law permanently removes the individual mandate, a key provision of the Affordable Care Act.<\/p>\n It should be noted that the impact from the TCJA is not expected to occur until the 2018 (not 2017) tax filing.<\/p>\n There is a significant amount of material as it relates to the Tax Cuts and Jobs Act\u201d (\u201cTCJA\u201d), and this article can only provide a brief sketch.<\/p>\n How the Tax Cuts and Jobs Act impacts U.S. Tax Returns<\/strong><\/p>\n Note the\u00a0following points<\/a>\u00a0that are affected by the TCJA and will be discussed in future newsletter articles.<\/p>\n Many itemized deductions eliminated, limited or modified:<\/strong><\/p>\n 6.\u00a0<\/i>Fully Eliminated<\/i><\/strong><\/p>\n a. Miscellaneous Itemized Deductions<\/p>\n b. Personal Casualty and Theft Losses<\/p>\n 7.\u00a0<\/i>Limited<\/i><\/strong><\/p>\n a. State and Local Income Taxes<\/p>\n b. Home Mortgage Interest<\/p>\n 8.\u00a0<\/i>Modified<\/i><\/strong><\/p>\n a. Charitable Contributions<\/p>\n b. Gambling Losses<\/p>\n c. Medical Expenses<\/p>\n Many \u201cAbove-the-line\u201d deductions eliminated, limited or modified:<\/strong><\/p>\n 9.\u00a0Fully Eliminated<\/em><\/strong><\/p>\n a. Alimony<\/p>\n b. Tuition and Fees<\/p>\n c. Domestic Production Activities Deduction (DPAD)<\/p>\n 10. Most education benefits remain the same, others modified<\/strong>. For example, the tax bill modifies this rule governing the discharge of student loans by including discharges on account of death or disability, so that such discharges are also excluded from taxable income.<\/p>\n 11. Health care penalty eliminated.<\/em><\/strong><\/p>\n 12. Self-employed taxpayers may claim a new deduction for qualified business income.<\/em><\/strong><\/p>\n 13. Taxpayers may benefit by adjusting withholding and estimated taxes.<\/em><\/strong><\/p>\n In conclusion, with such sweeping changes, it would be advisable that the taxpayer start meeting with their tax professional to undertake a planning process that centers on the taxability of their 2018 tax year.<\/p>\n","protected":false},"excerpt":{"rendered":" President Trump signed the “Tax Cuts and Jobs Act” into law on Dec. 22, as noted and summarized from a report by Investopedia. The Senate passed the bill on Dec. 20\u00a0by a party-line vote of 51 to 48. The House passed the bill later in the day by a vote of 224 to 201. No […]<\/p>\n","protected":false},"author":6,"featured_media":1134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"yoast_head":"\n\n