The passage of the Tax Cuts and Jobs Act on December 20th of 2017 brought with it significant changes to the tax code which will begin affecting individual taxpayers starting in 2018. These changes will have varying degrees of impact on virtually all individual taxpayers. One of these changes being the reductions to almost all of the individual tax rates including reducing the highest marginal rate from 39.6% to 37%. In addition, many individuals will be affected by the reduction or elimination of itemized deductions including limiting deductions for state/local income and property taxes to $10,000 per year.
Please be aware that state/local property taxes attributable to carrying on a trade or business or an investment activity engaged in for profit will not be subject to this limitation. In order to help you navigate many of these changes we have attached an easy to follow Reference Sheet for 2018 which incorporates these changes and also details other helpful 2018 information such as IRA and HSA contribution limits, etc.
We hope that this Reference Sheet provides you with the relevant information you are seeking and we ask that as you review this guide and have questions that you reach out to us with those questions.
The articles provided are for informational purposes only, do not constitute legal, tax or investment advice and do not necessarily represent the opinions of TFO Phoenix. The links to the Individual and Business Tax Reform sites are from the Journal of Accountancy. Laws may change pursuant to the new administration’s legislative agenda. Nothing in these articles should be interpreted as implying the performance of any client accounts, or securities recommendations. TFO Phoenix, Inc. does not provide any guarantee, express or implied, that the information presented is accurate or timely, and does not contain inadvertent technical or factual inaccuracies. TFO Phoenix is not in the practice of law. Always consult an attorney or tax professional regarding your specific legal or tax situation.