We have compiled a detailed qualitative analysis of the major provisions of the Tax Reform Bill signed into law on December 22, 2017. This is not a complete list of all provisions of the Bill. Please do not hesitate to contact us if you want more information about the specific provisions and their impact on you.
Individual Tax Provisions:
- Reduction in Individual Income Tax Rates
- Alternative Minimum Tax (AMT) for Individuals
- Estate Gift & GST Exclusion Increased
- FilingThreshold for 2018
- Self-Created Property as Capital Asset
- Individual Health Insurance Mandate Penalty Eliminated
- Qualified Opportunity Zone & Treatment of Reinvested Capital Gains
- Increase in Standard Deduction
- Personal & Dependency Exemptions Suspended
- Deduction for State & Local Taxes for Individuals Limited
- Home Mortgage Interest Deduction
- Medical Expense Itemized Deduction
- Charitable Deduction Modifications
- Personal Casualty & Theft Loss Deduction
- Various Itemized Deduction Changes
- Meal & Entertainment Under Tax Reform (Chart)
- Alimony & Separate Maintenance Payments
- Moving Expense Deduction
- Child Tax Credit
Business Tax Provisions:
- 21% Corporate Income Tax Rate & AMT
- Reduction of Dividend Received Deduction
- Qualified Business Income Deduction
- Section 179 Expensing
- Bonus Depreciation
- Depreciation Caps on Luxury Automobiles
- Computers as Listed Property
- Recovery Period for MACRS
- Depreciation of Farm Property
- Like-Kind Exchanges of Real Property
- Limitation on Deduction of Business Interest
- Net Operating Losses
- Limit on Excess Business Losses for Noncorporate Taxpayers
- Research and Experimental Expenditures
- Employer’s Deduction for Entertainment, Commuting Benefits, and Meals
- Expanded Availability of Cash Method, Exceptions to Inventory and UNICAP Rules, and Small Construction Contract Exception
- Special Rules for Accrual-Method Taxpayers Based on Financial Accounting Treatment
- Employer Credit for Paid Family and Medical Leave
- Rehabilitation Credit
International Tax Provisions:
- Participation Exemption Deduction for Foreign-Source Portion of Dividends
- Sales or Transfers Involving Specified 10-Percent Owned Foreign Corporations
- Deemed Repatriation at Two-Tier Rate
- Deemed-Paid Foreign Tax Credit
- Foreign Tax Credit Limitation Baskets
- Source of Income Rules for Cross-Border Inventory Sales
- Recapture of Overall Domestic Losses
- Foreign High Return Amounts of U.S. Shareholders of Controlled Foreign Corporations (CFCs)
- Other Subpart F Changes
- Base Erosion and Anti-Abuse Tax
- Limits on Income Shifting Through Intangible Property Transfers
- Related Party Payments Involving Hybrid Entities or Hybrid Transactions