2017 Tax Reform: Tax Planning & Practice Guide Highlights of the Tax Cuts and Jobs Act (12/2017)
On December 22, President Trump signed the new tax law titled, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.” The information provided refers to the Act by its former and commonly used name: The “Tax Cuts and Jobs Act.” This is a sweeping tax reform law that will entirely change the tax landscape. The legislation reflects the largest major tax reform in over three decades.
This comprehensive tax overhaul dramatically changes the rules governing the taxation of individual taxpayers for tax years beginning before 2026, providing new income tax rates and brackets, increasing the standard deduction, suspending personal deductions, increasing the child tax credit, limiting the state and local tax deduction, and temporarily reducing the medical expense threshold, among many other changes. The legislation also provides a new deduction for non-corporate taxpayers with qualified business income from pass-throughs.
For businesses, the legislation permanently reduces the corporate tax rate to 21%, repeals the corporate alternative minimum tax, imposes new limits on business interest deductions, and makes a number of changes involving expensing and depreciation.
This Tax Planning & Practice Guide provides a comprehensive summary of the new law covering individuals, businesses and business entities.