{"id":5429,"date":"2017-12-25T13:45:15","date_gmt":"2017-12-25T18:45:15","guid":{"rendered":"http:\/\/billlosey.com\/?p=5429"},"modified":"2017-12-25T13:45:15","modified_gmt":"2017-12-25T18:45:15","slug":"how-the-tax-reforms-will-take-effect","status":"publish","type":"post","link":"https:\/\/billlosey.com\/knowledge-center\/how-the-tax-reforms-will-take-effect\/","title":{"rendered":"How the Tax Reforms Will Take Effect"},"content":{"rendered":"<p><em>Some of the impact of the Tax Cuts &amp; Jobs Act will be felt later than January 1st<\/em><\/p>\n<p>President Donald Trump signed the Tax Cuts &amp; Jobs Act into law on December 22, and on January 1, some key details of the Internal Revenue Code will abruptly change.<\/p>\n<p><strong>There will be night-and-day change, both figuratively and literally. <\/strong>On January 1, the federal estate tax exemption will double; the standard federal income tax deduction will nearly double. The top corporate income tax rate will fall from 35% to 21%. Most business owners who make pass-through income will be able to deduct the first 20% of that income tax-free.<\/p>\n<p><strong>Workers may not see changes to their paychecks until February. <\/strong>This is because the Internal Revenue Service needs to release new withholding tables. Those tables are slated to appear in January.<\/p>\n<p><strong>Two provisions of the TCJA may also apply retroactively for some taxpayers. <\/strong>A larger federal tax deduction for out-of-pocket medical expenses is allowed not just for 2018, but also for 2017. Taxpayers who itemize may write off qualifying medical expenses exceeding 7.5% of income in 2017, instead of 10% of income. Businesses that bought new capital equipment after September 27, 2017 will be permitted to fully and immediately expense those purchases for the 2017 tax year.<\/p>\n<p><strong>Two other changes will not happen until January 1, 2019. <\/strong>On that day, the individual health insurance mandate is scheduled to be repealed; no taxpayer will face a penalty for not having health coverage. Another delayed change pertains to divorcing couples. Taxpayers who divorce in 2019 and succeeding years will not able to deduct alimony payments.<\/p>\n<p><strong>Many of the changes authorized by the passage of the TCJA could expire after 2025. <\/strong>Congress may or may not renew them at the end of that year. The reduction of the corporate tax rate to 21% is a notable exception \u2013 that change is permanent.<\/p>\n<p><strong>This is a good time to plan your 2018 tax strategy. <\/strong>Talk to your CPA or tax preparer soon, to see how you might take advantage of the adjustments to federal tax law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Some of the impact of the Tax Cuts &amp; Jobs Act will be felt later than January 1st President Donald Trump signed the Tax Cuts &amp; Jobs Act into law on December 22, and on January 1, some key details [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-5429","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/5429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=5429"}],"version-history":[{"count":0,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/5429\/revisions"}],"wp:attachment":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=5429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=5429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=5429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}