Under pre-Tax Cuts and Jobs Act Law, a net operating loss for any tax year was allowed to be carried back two years, and then carried forward 20 years. This carryback provided cash strapped taxpayers a quick refund of previously paid taxes. Under the new law, losses may only be carried forward so taxpayers [...]
DPAD allowed certain qualifying US business a deduction equal to 9% of the lesser of the taxpayer’s qualified production activities income or the taxpayer’s taxable income for the tax year.
This new deduction should provide a substantial tax benefit to individuals with “qualified business income” from a partnership, S corporation, LLC, or sole proprietorship. This income is sometimes referred to as “pass-through” income. The deduction is 20% of your “qualified business income (QBI)” from a partnership, S corporation, or sole proprietorship, defined as the [...]
The deduction for personal exemptions is effectively suspended by reducing the exemption amount to zero.
The standard deduction is increased to $24,000 for married individuals filing a joint return, $18,000 for head-of-household filers, and $12,000 for all other taxpayers, adjusted for inflation in tax years beginning after 2018. No changes are made to the current-law additional standard deduction for the elderly and blind.
The new law limits the aggregate deduction for state and local real property taxes, personal property taxes, state and local income and general sales taxes (if elected) for any tax year to $10,000 ($5,000 for marrieds filing separately). Important exception: The limit doesn't apply to state and local, real property taxes; and state and [...]
The tax on unearned income of children under the age of 19 (or full time students under age 24) that exceeded $2,100 was taxed at their parents tax rate. The Tax Cuts and Jobs Act modifies the kiddie tax to effectively apply the estates' and trusts' ordinary and capital gains rates to the net [...]
Under pre-Act law, the child tax credit was $1,000 per qualifying child, but it was reduced for married couples filing jointly by $50 for every $1,000 (or part of a $1,000) by which their adjusted gross income (AGI) exceeded $110,000. (The threshold was $55,000 for married couples filing separately, and $75,000 for unmarried taxpayers.) [...]
Under the Tax Cuts and Job Act, the limit on acquisition debt is reduced to $750,000 ($375,000 for a married taxpayer filing separately). The $1 million pre-TCJA limit applies to acquisition debt incurred before Dec. 15, 2017 and to debt arising from refinancing pre-Dec. 15, 2017 acquisition debt to the extent the debt resulting [...]