As the House and Senate debate the details of the proposed Tax Cuts & Jobs Act, I thought I would share some of the main proposals where there is some mutual agreement.
Here is a link to a summary of the proposals:
There is a lot of debate about who these changes will help the most and it’s very clear it will indeed help lower wage income earners who don’t itemize and some middle and upper income earners who will avoid AMT, however, if the SALT (state and local income tax) deductions are fully repealed it will penalize home owners who exceed the proposed new standard deduction.
Of other significance, the personal exemptions have been repealed and even with the more favorable rates and an increased standard deduction, families with children and income greater than $230,000 will begin lose the increased child tax credit thus negatively impacting their taxes.
Here is a link to a summary of the Tax Cuts & Jobs Act.
Don’t hesitate to reach out to us and to see how this historic act will impact you.