These are the notes from Craig's talk:
2017 Tax Reform: The Tax Cuts and Jobs Act
4 brackets (currently 7 brackets)
12% on first $90k (15% on first 75k)
25% $90k to $260k (25%/28% 75k to 231k)
35% $260k to $1m (33%/35% 231k to 431k)
38.5% over $1m (39.6% from 413k)
Reduced rates for small business with net active business income. 25% maximum rate. 9% on first 75k earning less than $150k in taxable income from pass through business. Not available for personal service businesses.
No change to capital gains rates.
Repeals Alternative Tax Minimum Tax
Increased child tax credit $1,600 (was $1,000)and increased income levels $230k ($100k)
Plug in electric drive motor vehicles repealed for cars after Dec 31, 2017.
Standard deduction increased to $24,400 married/$12,200 for single (was $12,700 Married/$6,300 single)
No personal exemptions (was $4,050)
Medical Expenses Repealed
No state and sales tax deduction.
Limits property tax deduction to $10k
Mortgage interest to interest on first $500k in loan balance. ($1.1 loan balance) Limited to one qualified residence. Homes after November 2, 2017.
Unreimbursed Employee Expenses
Moving Expenses Repealed
Gain on Sale of Residence changed to 5 out of previous 8 years and only used once every 5 years. Will phase out higher income levels.
Estate Tax exclusion to $11.2m
Estate and GSR taxes repealed for deaths after Dec 31, 2023. Still keeping the stepped up basis provisions. This will be better than the 2010 law.
20% flat tax rate (15%/25%/24%/35%)
Personal Service corporation flat 25% (from 35%)
100% cost recovery deduction for new qualified property purchases Sept 27, 2017 to Dec 31, 2022. (50% old deduction)
Increased Sec 179 deduction $5m (from$550,000). Phase out at $20m. Effective new property after Nov 2, 2017. Includes qualified energy efficient heating and AC equipment.
Like kind exchanges only applies to real property.
50% food and beverage and qualifying business meals. No deduction for all other entertainment.
Extension of solar energy credit of 30% but reduced starting in 2020 to 26% and repealed after Dec 31, 2021.
Remember to invite guests to keep our membership continually growing!
1st Classification Postings:
2nd Classification Postings:
Welcome New Members:
Welcome Mary Loos of Bixby Neighbors in the classification of Magazine: Bixby Knolls.
Other Membership News:
Frank Messano of Dilday & Associates has gone into abeyance after Jack's passing in accordance with our bylaws. We look forward to his return in a month.
Classification of the Month:
Featured Classification for November:
Traveling? Call Pat Ellington for toady's hot deals.
PGA West La Quinta Condo. Call Jim Nesmith for details (562) 900-2230.
Board Meeting Minutes: