The Tax Cuts and Jobs Act

On Friday, President Trump executed a tax reform bill that will have broad implications for individual and business tax planning.

Here are a few of the best articles and summaries we’ve read so far.

Tax Cuts and Jobs Act Summary
Provided by Lopata, Flegel & Company
A comprehensive overview of the new law with additional commentary on anticipated impact.

34 Things You Need to Know About the Incoming Tax Law
CNN Money
An easy to understand list of the main tax changes that doesn’t get too deep in the weeds.

What’s in the Final Republican Tax Bill
The New York Times
A simplified “apples-to-apples” chart comparing the old and new tax codes.

This new tax code will make its way into our planning models and conversations during 2018. On balance, we feel it will help improve situations for many of our corporate and personal clients, but it isn’t going to have the same impact everywhere.

Most notably, there is a tremendous difference for our clients in high income tax states (New York, California, Iowa, Wisconsin and Oregon) as compared to our clients in low/no tax states (Florida, Texas, South Dakota, Wyoming and Washington). Over time, we expect this new federal tax regime to put significant pressure on states and will surely be watching for changes at the state level to come.

Note for itemized deduction filers in 2017
The new tax code nearly doubles the standard deduction – $12,000 for single filers and $24,000 for married couples filing jointly. For filers who plan to itemize deductions in 2017 but anticipate taking the higher standard deduction in 2018, accelerated charitable gift contributions could help maximize this benefit.

We would encourage discussing an accelerated gift fund contribution or direct gift to an institution with your tax advisor before the end of the year. If you would like assistance in completing an additional gift, we are available to help facilitate such things. End of year deadlines for charitable contributions vary by custodian.

Fidelity Charitable Contribution Deadlines
Schwab Charitable Contribution Deadlines

We hope this information has been helpful. Taxes aside, it has been a very good year for “gross-of-tax” results and we hope that is just one of the issues that has helped prepare you for a great start to 2018. Know that our team is here to help and will assist you any way we can.