As a taxpayer, you have an invested interest on any plan that affects your tax status. While progressive change is expected and desired, at what cost will these tax changes be to your personal tax status and that of your business?
If you are concerned about the impact the proposed tax changes will have on you or your business, it’s best to consult a tax attorney.
Possible Tax Changes for Individuals
While a final bill is not expected to be handed to the President until the end of the year, here is a summary of some of the tax changes for individuals.
- The number of tax brackets may be reduced.
- Standard deductions doubled to $24,000 for married joint, single filers go from $6,300 to $12,000.
- Personal exemption eliminated.
- Increase in child tax credit and $300 credit for non-child dependents.
- House eliminates Marriage Penalty in reference to Child Tax Credit.
Changes to Estate Tax
- Proposed changes include doubling the estate tax exemption and possibly eliminating estate tax and generation-skipping transfer tax by January 1, 2024.
Proposed Tax Changes for Businesses
If you are a business owner, these planned tax changes might affect you:
- The maximum corporate tax rate will decrease from 35% to 20%.
- Small businesses would be taxed at a maximum tax rate of 25%. This includes sole proprietorships, partnerships, and S corporations, with some exceptions.
- Companies can write off business expenses immediately, but only for five years.
- Income that businesses earn in foreign countries would not be taxed, but a 10% tax on high-profit foreign subsidiaries would be imposed. Also, a one-time tax on profit stockpiles would be imposed.
For more information on Trump’s Tax Changes and the implications they have on you, your future, or your business, click here.
If you would like to discuss how this could affect you or your business, make sure to schedule a consultation with a lawyer who understands the tax laws.
Contact Mendes Weed, LLP for Your Personal or Business Tax Matters
If you have questions or concerns about current or future tax laws and their changes, contact Mendes Weed, LLP We have offices in Walnut Creek, Sacramento, and San Francisco and represent clients throughout the United States.
Disclaimer: The tips and materials provided on this page are for informational purposes only, offered as public service. No information on this website should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.