Sunday, December 31, 2017
The passage of the Tax Cuts and Jobs Act represents the most sweeping tax code revision in decades. Most of its provisions will take effect in January of 2018, with many expiring after 2025 and none effecting taxpayers’ 2017 tax returns. Some of the major provisions are: 1) a change in tax brackets, 2) an increased standard deduction, 3) the reduction or elimination of some itemized deductions, 4) an increase in the child tax credit, 5) the elimination of the dependent deduction and personal exemption, 6) a change to the Alternative Minimum Tax, 7) changes to the treatment of income generated by pass-through entities, and 8) a lower corporate tax rate. It is important for investors to remain resolute in the face of these substantial changes and to remember the effect on personal tax liability depends upon individual circumstances.
See Hayden Adams, New Tax Plan: Here’s What You Should Know, Charles Schwab, December 20, 2017.