US Tax reform is now law!

I get calls everyday from friends, colleagues and others asking about the tax changes in the US. The H.R. 1 or Tax Cuts and Jobs act is now law. I am creating this thread to share some of the main changes with my Internations Community.

Here are some highlights of the new tax environment for Protected content .

- Overall tax rate reduced for individuals and corporations, 7 new tax slabs for Individuals at 10%, 12%, 22%, 24%, 32%, 35% and 37%
- Flat 21% Corporate tax rate as opposed to graduated based on taxable income
- Standard deduction increases to:
oSingles and Married Filing Separately - $12,000
oHead of Household - $18,000
oMarried Filing Jointly - $24,000
•Personal Exemptions repealed and changes to many itemized deduction thresholds
•Child Tax Credit:
oIncreased to $2,000 with up to $1,400 being refundable
oPhase out from $200,000 upwards
•State and Local taxes – deductible up to $10,000
•Deductions for casualty losses, moving expenses, theft losses and un-reimbursed employee expenses no longer available
•Home Mortgage Interest:
oHome Equity Mortgage and Lines of credit Interest – No longer deductible
oDebt level reduced from $1 M to $750,000
•Estate Tax Exemption increased to $22.4M and $11.2M for married couples and singles respectively
•Thresholds for Alternate Minimum Tax for individuals changed and Corporate AMT repealed
•Qualified Business Income in pass-through entities - can avail a 20% deduction
•Many changes in International Tax Provisions including a 15.5% tax on cash/cash equivalents and 8% tax on non cash assets

It is never too early to plan. Hope you find this information useful.