Craig Kotani of Sawin & Kotani | November 20, 2017

Written by 
Rate this item
(1 Vote)

On Monday, November 20th the Executives Association of Long Beach met for their weekly networking luncheon to hear Craig Kotani, owner of Sawin & Kotani speak on accounting and the changes to the tax law the House is trying to pass.

These are the notes from Craig's talk:

2017 Tax Reform: The Tax Cuts and Jobs Act

House Version: 

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Plug in electric drive motor vehicles repealed for cars after Dec 31, 2017.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Medical Expenses Repealed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Moving Expenses Repealed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Estate and GSR taxes repealed for deaths after Dec 31, 2023.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Extension of solar energy credit of 30% but reduced starting in 2020 to 26% and repealed after Dec 31, 2021. 


Next Meeting: 

We are Dark next week (November 27th) post-Thanksgiving. Have a happy Thanksgiving with your family! We look forward to seeing you at the EALB Holiday Dinner at the Long Beach Yacht Club on Friday, December 1st at 6pm. 


Remember to invite guests to keep our membership continually growing!

1st Classification Postings:


2nd Classification Postings:


Membership 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:

 Pest Control

Advertisements/Want Ads:

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: 


Read 2552 times

Review Us


Connect With Us