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2017 Tax Cut & Jobs Act Summary

Quicklink to key provisions:

Bonus Depreciation and Section 179
Pass through deduction (20%)
Overview of personal income tax changes

Other highlights of the tax law change:

Most of the changes begin in 2018 and phase out in 2025

Corporate & Small Business Taxation​

  • C-Corp rate reduced to 21%
  • C-Corp AMT repealed
  • Bonus depreciation and 179 expanded
  • Bonus is now 100% (for post 9/27/17 acquisitions) which = "full expensing"
  • Bonus now applies to USED property acquired
  • 179 can be used on expanded "Qualified Improvement Property"
  • Pass-through deduction (20%)

 

Individuals & Estates

  • Individuals
  • Taxes and rates
    • ACA mandate is eliminated beginning in 2019
    • Still in effect for 2018
    • Rates/Brackets
    • 10,12,22,24,32,35,37
    • 24% is key break with 8% jump to next bracket
    • Changes to taxation of children's income
    • AMT (for individuals)
    • Exemption increased from 84K to 109K (MFJ)
  • Deductions
    • Standard deduction is doubled ($24K for MFJ)
    • Personal exemption amount reduced to $0
    • Itemized deduction limit for high-incomes is suspended
    • Medical expense floor is reduced back to 7.5% for all taxpayers
    • $10,000 limit on income and property taxes
    • Mortgage interest deduction limited if debt exceeds $750,000
    • Alimony is NO LONGER DEDUCTIBLE (after 2018)
    • Moving expenses no longer deductible
  • Credits
    • Child Tax Credit doubled to $2,000/child and phase-out increased to allow more taxpayers to qualify.
    • Refundable CTC is increased to $1,400/child
  • Estates
    • Exemption doubled to $11.2M
    • Portability retained

 

Go here for an interesting calculator to estimate the impact of the new law on your tax bill:  TaxPolicyCenter.org