2017 Year End Highlights
- Congress and the President have put in law the Tax Cuts and Jobs Act;
- Section 179 equipment expensing has been increased to $1,000,000;
- Research and Development Credit has been made permanent;
- 50% bonus depreciation extended through 2019.
- AMT exemptions are increasing for 2017. The Tax Cut and Jobs Act increases the AMT exemption for joint filers to $109,400 and $70,300 for others.
- Estate and gift tax exemption rises to $5,450,000 in 2017; for 2018 the married exemption increases to $22 million.
- De minimis safe harbor for taxpayers with no AFS (applicable financial statement) raised to $2,500.
- The standard mileage rate declines to $.535 per mile for 2017 ($.545 in 2018).
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Individual Provisions Available for 2017 and Future Years
- Deduction for expenses of elementary and secondary school teachers - $250
- Mortgage debt forgiveness
- Deduction for mortgage interest premiums
- Deduction for state and local taxes (maximum $10,000 deduction in 2018 and thereafter)
- Above the line deduction for higher education tuition expenses, up to $4,000
- Tax-free distributions from individual retirement plan for charitable purposes
- Significant changes to individual provisions have been implemented by the Tax Cuts and Jobs Act for 2018.
We advise you to visit us soon to determine your 2017 tax liability and potentially prepay it before it becomes a penalty issue in April. For 2018, the Tax Cuts and Jobs Act introduces new rate brackets, increased standard deduction, reduced deductions for personal mortage interest and state and local taxes, and decreased corporate income tax rates. Miscellaneous itemized deductions (such as deductions for unreimbursed employee business expenses and investment advisory fees) are nondeductible starting in 2018.
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If you have any questions about any of these provisions, please contact us!
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