Saturday, December 30, 2017
A number of changes borne of the updated tax code are slated for delivery on Monday. The bill adds exemptions and makes cuts to the corporate, individual, and international tax rates, but only a few of these provisions are actually permanent. The individual tax cut, an increased exemption for the alternative minimum tax, a doubled exemption for estate taxes, and the expanded child tax credit all go into effect on Monday and they all expire by 2025. Starting in 2019, alimony payments will no longer be deductible for newly-divorced couples and the individual mandate for the Affordable Care Act will be repealed. Finally, beginning in 2022, companies may no longer immediately write off their entire research and development expenses. Instead, companies will have to spread those costs over a span of five years.
See Michael Sheetz, Tax Changes Are Coming on Monday: Here’s When It Will Affect You, CNBC, December 28, 2017.