House Oversight — Estate records
HOUSE_OVERSIGHT_029438
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TAX BULLETIN 2018-1 JANUARY 2, 2018 0BTAX REFORM SIGNED INTO LAW OVERVIEW Without much fanfare but with typical political controversy, the House and Senate successfully reconciled their respective tax bills and the new tax legislation (the “Act”), was signed into law by President Trump on December nd 22P P, 2017. House and Senate conference committee members leaned in favor of many provisions contained in the Senate proposal. A significant move in that direction was retaining the elimination of the Affordable Care Act’s individual mandate (the penalty for failing to maintain minimum essential health care coverage) and using the Senate’s methodologies for taxing income from pass-through businesses (though some elements of the House bill entered into the computation). In other circumstances, a true compromise was reached, such as meeting in the middle on modifications to mortgage interest deductibility. In order to abide by Senate budget reconciliation rules and ensure the Act does not result in budget deficits outside the 10-year budget window, the Act makes almost all changes to individual income tax provisions temporary – nearly all expire at the end of 2025. No doubt, this will create tax complexity and political difficulties. On the other hand, most corporate provisions are permanent. This Tax Bulletin 2018-1 summarizes certain provisions of the 1 Act and adds observations on income, estate and pass-through taxation.P0F P INDIVIDUAL TAXES 2017 LawP1F 2 2018 LawP2F 3 Individual Tax Rates Standard Deduction Kiddie Tax Personal Exemption Child / Dependent Tax Credits Top Capital Gains/Dividend Tax Rate 10, 15, 25, 28, 33, 35, 39.6% 10, 12, 22, 24, 32, 35, 37% Top rate would apply to income over $600,000 4 for married filing jointly; $500,000 for singleP3F $12,700 ($6,350 if single) $24,000 ($12,000 if single), enhanced for 4 elderly and blindP Unearned income of a child taxed at parents’ tax rate if higher than child’s rate Simplifies kiddie tax by applying trust r […]