Facebook
LinkedIn
Close
Back

Client Login

- Individual Clients
- Business Clients
- Client Employee

QuickBooks Online

Client Forms

Video Meeting

Join a scheduled video meeting with our staff.
Join Meeting
Close
Send Request

Educating clients with smart accounting solutions to
REFOCUS how they work & live

Proposed Tax Reform Plan: What Could It Mean for You?

September 29, 2017

Tax reform, one of President Trump’s key legislative agenda items, is moving closer to fruition. Based on the outline of his proposed tax reform package, which he unveiled on September 27, 2017, we’ve compiled this brief overview of the President’s major tax proposals:

Individual tax changes:

  • There would be only three tax brackets including one at 12%, one at 25% and one at 35%. Legislators would have the option of adding a fourth bracket as a safeguard should wealthy taxpayers be in the position to pay less than they do in the current system.

  • The standard deduction would be doubled to $24,000 for married couples and $12,000 for single filers.

  • Personal exemptions would be eliminated. In addition, many itemized deductions would be eliminated or modified with the exception of mortgage interest and charitable contribution deductions.

  • The proposal encourages lawmakers to keep tax incentives for home ownership, retirement savings, charitable giving and higher education.

  • The child tax credit would be significantly increased from the current $1,000 per child under 17 years of age.

  • The estate tax and the alternative minimum tax (AMT) would be eliminated.

Business tax changes:

  • The C-corporation tax rate would be lowered from 35% to 20%. The deduction for net interest expense incurred by C-corporations will be partially limited.

  • Sole proprietors, partnerships and S-corporations would have a maximum tax rate of 25%. Measures will also be implemented to prevent wealthy taxpayers from avoiding the top personal tax rate by re-characterizing their personal income as business income.

  • A one-time low tax rate on existing overseas profits will be offered to companies in an attempt to have them move corporate money back to the United States.

  • Future international earnings will not be taxed by the United States when paid as dividends from a foreign subsidiary if the U.S. parent company owns at least a 10% stake in the foreign subsidiary.

  • A lower tax rate will be implemented on the foreign profits U.S. multinational companies to discourage them from sheltering profits in overseas tax havens.

  • The proposal allows for the immediate expensing of the cost of new investments in depreciable assets, other than structures, that are made after September 27, 2017.

  • The Section 199 production deduction will be eliminated based on the premise that it is no longer necessary in light of the lower corporate and individual income tax rates.

  • The research and development credit and low income housing credits will be retained.

If you have any questions about these potential changes to the tax code and how they may impact your tax situation or your business, please contact us.

   

Back to List


Recent Posts

Tips to Simplify Your Thanksgiving Spread

Plan Now and Take Advantage of 2017 Tax Savings

Simplify Seasonal Staffing with these Smart Strategies

5 Tips to Reset Your Stress Response

Proposed Tax Reform Plan: What Could It Mean for You?

Impacted by the Equifax Hack? Take These Steps Now!

Tips for Maximizing the Value of Your Next Staff Retreat

Free Money-Saving Apps for Every College Student

Expert Advice to Keep Your Internet-Enabled Devices Safe from Cyber Criminals

Be Alert and Aware: Tax Scammers Don’t Take a Summer Vacation

Reduce Certain Summertime Costs with the Child and Dependent Care Tax Credit

Illinois Income Tax Act

Tips for Implementing a Successful Flex-time Schedule this Summer

Four Money-Saving Mid-Year Financial Planning Tips

How to Protect Your Business from the Next “Wanna Cry” Attack

Tips to Help You Stem the Flow of Potential Risks This Flood Season

How to Really “Clean Up” at Your Next Yard Sale

Take Your Spring Cleaning to the Office with These Tips

These Tax Day Treats Shine Light at the End of the “Tax Season Tunnel”

Do You Sit All Day? Take a Stand Against a Sedentary Lifestyle

Set the Stage to Help Your Home Sell This Spring

Avoid March Madness—Why You Should File Your Taxes Now

Home Improvements as Medical Expenses

Small Businesses Can Restart Health Reimbursement Accounts in 2017

Tips to Defend Your Business from Cyber Attacks

Break Barriers in 2017 with These Mind-Changing Mini Resolutions

Keep the Holidays Merry with These Simple Stress Relievers

Obama’s New Overtime Pay Rule is On Pause—What Does it Mean for Your Business?

Take Note of New Business Tax Deadlines in 2017

Help for College Bills?

Five Key Areas Every Business Owner Should Review Before Year End

Start Holiday Gift Giving for the Kids with an IRA Contribution

Don’t Let Year-End Cost-Cutting Derail Your Business Goals

Mom Needs Help. What Now?

Wondering About Tax Deductions for Political Contributions? Here’s the Lowdown

Take Note! The Filing Deadline for W-2s and 1099s is January 31 in 2017

The World is Chipping Away at Credit Card Fraud—But Individual Vigilance is Still Key

Before the First School Bell Rings, It’s Time to Reset the Alarm Clock

Is it Time to Revisit Roth IRAs?

Getting Married this Year? Here’s Your Tax Tip Sheet

Key Lessons from the Financial Fallout of the ‘Brexit’ Vote

Smart Strategies to Handle the “Downfall” Problem 1 in 4 New Businesses Experience

IRS Fights Scammers – Instructs Staff to Initiate All Future Audits by Mail; Never by Telephone

Premium Tax Credit Update

No Time to Garden? Try These Time-Saving Tips

Overtime Pay Eligibility Expanded – What Businesses Need to Know

Sleep on This! Think Quality Not Quantity When It Comes to Shut-Eye

Be $1,000 Richer by Next Year with These Simple Savings Strategies

Social Security Shuts Down the File and Suspend Procedure

5 Actions to Reduce Cyber Liability Risks in Your Business Today

Final Check – Did You Claim Every Eligible Tax Deduction?

Five Snacks to Spring Clean your Body and Mind

Make Your Spring Break Worry-Free with These Home Security Tips

Tax Season is Scam Season... Keep Your Information Safe!

Identity Protection PIN Letters List Incorrect Tax Year

Getting Over It… Quick Tips for Beating the Post-Holiday Slump

2016 Mileage Rate Notice

Customer Service Goes Social—Is Your Business Prepared?

Year End Tax Planning for 2015

IRS Simplifies Filing and Recordkeeping for Small Business – Hooray!

Tis the Season! Avoid Common Holiday Scams with These Tips

The Key to Scoring on Black Friday? Create a Pre-Game Plan

Time for the RMD Withdrawal

It’s Tax Planning Time—Here Are Some Money-Saving Tips for Individuals and Businesses

4 Steps to Finding the Sweet Spot for Success

To “B” or not to “B”

Income Tax Planning for Trusts

Health Care Coverage and Small Business

Ease Aches, Pains and Worker’s Comp Claims with These Ergonomics Tips

Spending Less Cash on Gas? Use Your Savings to Rev-Up Your Finances

New Tax Law More Than Doubles Fines for Failure to File Information Returns and Failure to Provide Payee Statements

Highway Funding Bill Ushers in New Tax Return Due Dates and Other Important Changes

Not Sure Which Metrics Are Right for Your Business? Help is Here!

Plan in Advance to Help Aging Parents Manage Their Money

Income Tax Planning for Trusts

Four Ways Mid-Year Financial Planning Can Pay Off

The IRS and Identity Theft

Love and Taxes

Our New Website

New Standard Mileage Rates Now Available; Business Rate to Rise in 2015

Individual Tax Planning

Many Retirement Plan Dollar Limits are Changed for 2015

Social Security wage base increases to $118,500 for 2015

Home Office Deduction

Nanny Taxes are not just for nannies

Does your Employer Treat You as an Employee?

Net Investment Income Tax

Foreign bank account and financial reporting requirements

State Taxes

Defective Grantor Trusts: Efficient Estate Freezing Tool

Tax Deductions

Latest from Our Blog