The new Tax Cuts and Jobs Act made some significant changes to the U.S. tax code. These reforms will impact individuals and business in an important way. It is crucial to know how you will fare given the new rules.

1. New Tax Law:
Here’s What You Should
Know
Erick Cutler, CPA
Goldin Peiser & Peiser, LLP

3. INDIVIDUALS
• Income tax rates of individuals, estates, and
trusts
• Standard deduction
• Personal and dependent exemptions
• Filing thresholders for individuals
• Individual health care mandate

4. INDIVIDUALS (cont.)
• Child tax credit
• 529 accounts
• Discharge of student loan debt

5. PERSONAL & NONBUSINESS
DEDUCTIONS
• Overall limitation (“Pease Limitation”) on
itemized deductions suspended
• Modification of deduction for home mortgage
interest
• State and local tax deduction
• Limitation of wagering losses
• Modifications to the deduction for charitable
contributions

6. PERSONAL & NONBUSINESS
DEDUCTIONS (cont.)
• Deduction for medical expenses
• Repeal of deduction for alimony payments
• Repeal of certain itemized deductions subject
to the 2% floor

7. RETIREMENT PLANS & IRAS
• Recharacterization of Roth IRA contributions
• Extended rollover period for rollover of plan
loan offset amounts

8. ESTATE AND GIFT TAXES &
AMT
• Estate and gift taxes
• Unified credit for federal estate, gift, and
GST taxes
• Alternative minimum tax (AMT)

9. PASS-THROUGH ENTITIES &
DEPRECIATION AND EXPENSING
• Pass-through entities
• 20% deduction for certain pass-throughs and sole
proprietorships
• Depreciation and expensing
• Bonus depreciation
• Section 179 expensing

10. BUSINESS DEDUCTIONS,
EXCLUSIONS AND CREDIT
• Interest expense deduction for businesses; floor
plan financing
• Modification to net operating loss (NOL)
deductions
• Limitation on deduction of meals and
entertainment expenses
• Employer credit for paid family and medical
leave

11. CHANGES TO CAPITAL GAINS
& QUALIFIED DIVIDENDS
2017 Rates
Capital
Gain Tax
Rate
Long Term Capital Gain/
Qualified Dividend Income
MFJ Single
0% $0 - $75,000 $0 - $37,500
15%
$75,000 -
$225,000
$37,500 -
$112,500
20% $225,000 + $112,500 +
2018 Rates
Capital
Gain Tax
Rate
Long Term Capital Gain/
Qualified Dividend Income
MFJ Single
0% $0 - $75,000 $0 - $37,500
15%
$75,000 -
$225,000
$37,500 -
$112,500
20% $225,000 + $112,500 +

12. INDIVIDUAL TAX RATES
MARRIED FILING JOINTLY
OLD LAW NEW LAW
TAX RATE TAXABLE INCOME TAX RATE TAXABLE INCOME
10% $0 - $18,650 10% $0 - $19,050
15% $18,651 - $75,900 12% $19,051 - $77,400
25% $75,901 - $153,100 22% $77,401 - $165,000
28% $153,101 - $233,350 24% $165,001 - $315,000
33% $233,351 - $416,700 32% $315,001 - $400,000
35% $416,701 - $470,700 35% $400,001 - $600,000
39.6% $470,701 and above 37% $600,001 and above

13. INDIVIDUAL TAX RATES (cont.)
MARRIED FILING SEPARATELY
OLD LAW NEW LAW
TAX RATE TAXABLE INCOME TAX RATE TAXABLE INCOME
10% $0 - $9,325 10% $0 - $9,525
15% $9,326 - $37,950 12% $9,526 - $38,700
25% $37,951 - $76,550 22% $38,701 - $82,500
28% $76,551 - $116,675 24% $82,501 - $157,500
33% $116,676 - $208,350 32% $157,501 - $200,000
35% $208,351 - $235,350 35% $200,001 - $300,000
39.6% $235,351 and above 37% $300,001 and above

14. INDIVIDUAL TAX RATES (cont.)
HEAD OF HOUSEHOLD
OLD LAW NEW LAW
TAX RATE TAXABLE INCOME TAX RATE TAXABLE INCOME
10% $0 - $13,350 10% $0 - $13,600
15% $13,351 - $50,800 12% $13,601 - $51,800
25% $50,801 - $131,200 22% $51,801 - $82,500
28% $131,201 - $212,500 24% $82,501 - $157,500
33% $212,501 - $416,700 32% $157,501 - $200,000
35% $416,701 - $444,550 35% $200,001 - $500,000
39.6% $444,551 and above 37% $500,001 and above

15. INDIVIDUAL TAX RATES (cont.)
SINGLE
OLD LAW NEW LAW
TAX RATE TAXABLE INCOME TAX RATE TAXABLE INCOME
10% $0 - $9,325 10% $0 - $9,525
15% $9,326 - $37,950 12% $9,526 - $38,700
25% $37,951 - $91,900 22% $38,701 - $82,500
28% $91,901 - $191,650 24% $82,501 - $157,500
33% $191,651 - $416,700 32% $157,501 - $200,000
35% $416,701 - $418,400 35% $200,001 - $500,000
39.6% $418,401 and above 37% $500,001 and above

17. CONTACT INFORMATION
Erick Cutler
Ecutler@GPPcpa.com
214-635-2541