Good day ladies and gentlemen! Some significant changes were made to the tax law for 2018! These are the biggest changes made to our United States tax code in over 30 years! Being aware of these changes and how they will affect your individual tax situation and income is very important. So, I outlined some general information on the tax reform changes for 2018 that will affect us the most. Remember, everyone's tax situation is unique, and I advise you to consult with me or your tax professional. (Legend: S-single, MFJ-married filing jointly, MFS-married filing separately, HH-head of household)

Standard deductions for 2018 Positive

S MFJ MFS HH

$12,000 $24,000 $12,000 $18,000

Standard deductions for 2017

S MFJ MFS HH

$6,350 $12,700 $6,350 $9,350

• SALT(State and local taxes) deductions are limited to $10,000(general property), unless it is a trade or business. There was no previous limits on SALT deductions in 2017. Negative

• 20% deduction for QBI(Qualified business income...sole proprietorship, partnership, S corp, and pass thru entities). Starts to phase out at $315,000 and no deduction at $415,000 or greater annual income. There was no previous deductions on OBI in 2017. Positive

• 21% Corporate tax rate, down from 35% in 2017. Positive

• $11,000,000 exemption on estate and gift taxes, up from $5,200,000 in 2017. Please be aware that this clause is due to sunset on December 31, 2025. Positive

• 37% highest individual tax rate, down from 39.6% in 2017. Positive

• Personal exemptions repealed, down from $4,050 in 2017. Negative

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