Congress has passed tax reform that will take effect in 2018, ushering in some of the most significant tax changes in three decades. There are a lot of changes in the new bill, which was signed into law on Dec. 22, 2017.
You can use this as a high-level overview of some of the most significant items in the new bill. Because major tax reform like this happens so seldom, it may be worthwhile for you to schedule a tax-planning consultation early in the year to ensure you reap the most tax savings possible during 2018.
Key changes for individuals:
Here are some of the key items in the tax reform bill that affect individuals:
One of the changes in the tax bill is the repeal of the Affordable Care Act (also known as “Obamacare”) individual mandate penalty. The penalty is set to zero starting in 2019 but remains in place for 2018 and prior years.
Key changes for small businesses:
Here are some of these key items in the tax reform bill that affect businesses:
This brief summary of the tax reform bill is provided for your information. Any major financial decisions or tax-planning activities in light of this new legislation should be considered with the advice of a tax professional. Call if you have questions regarding your particular situation. Feel free to share this memo with those you think may benefit from it.