Jonathan W. Kaplow, P.C. CPA

An Expert in QuickBooks Software

TROPICAL STORM IMELDA RELIEF & EXTENSION UNTIL JAN. 31st, 2020.


Note: Only for individual (Form 1040), corporation (Form 1120), and other tax returns that were due October 15th, 2019.
 

Tax Law Changes in Effect Beginning 

with the 2018 Tax Year.


Major Changes - Individuals


  • Tax rates are lowered and brackets are expanded, resulting in an approximate 5% tax rate reduction.
  • Top tax rate lowered to 37% and starts at taxable income of $600,000 for married filing jointly.
  • Standard deduction nearly doubles to $24,000 for married filing jointly, head of household $18,000 and $12,000 filing single.
  • Deduction for exemptions eliminated.
  • Limits state and local (such as property and sales tax) deduction to $10,000 per year.
  • Limits mortgage interest on new loans to a loan amount of $750,000.




 
Major Changes – Business

  • Flat tax rate for C corporations of 21%.
  • 20% deduction for many pass through entities (S corporations and partnerships) as well as sole proprietors. The deduction is eliminated for certain service businesses that earn over $315,000 married filing jointly or $157,500 filing single.
  • Business entertainment expense such as tickets to sporting events is eliminated.
  • 100% bonus depreciation includes used equipment good through 2022.



Law Changes (2018-2019)
ADP, LLC Accountant Connect
 
Trusts & Estates 

Previous Brackets

•15%
•25%
•28%
•33%
•39.6%

New Brackets

•10%
•24%
•35%
•37%

 
For more information regarding the tax law changes, please either download the pdf below of a summarized presentation we have created or visit the related IRS websites.

 
Powerpoint


Click the image to download or view a PDF version of a presentation overviewing the new tax law changes starting the 2019 tax filing year.

https://www.irs.gov/newsroom/irs-several-tax-law-changes-may-affect-bottom-line-of-many-business-owners
https://www.irs.gov/newsroom/get-ready-for-taxes-heres-how-the-new-tax-law-revised-family-tax-credits