Tax Cuts and Jobs Act 2017

Tax Cuts and Jobs Act 2017 made sweeping changes to tax law. Individuals and business owners will be impacted by the changes. In order to make these changes in the tax law work in your favor, you need to plan your financial affairs for the years ahead. Some of these new provisions will initially benefit the taxpayers.

However, because of the sunset provisions of these new tax laws, tax planning must take into account their impact over a period of 5-7 years. The new provisions are effective for the tax year ending after 2017. Therefore for your income tax return for 2017 the rule is “Defer income and Accelerate expenses”.

Some highlights of the changes:

• Repeal of the personal exemption. 2017 amount is $4050.
• For Married Filing Jointly, Standard Deduction Jumps from $12,700 to $24,000.
For those filing as single, the amount increased from $6,700 to $12, 000.
• Deduction for State and Local Taxes (Income, Sales and Property) are limited to $10,000.
• Mortgage Interest Deduction would be lowered from $1 million to $750,000. No deduction for home equity line of credit.
• Alternative Minimum Tax Exemption level has been increased from $84,000 to $109,400.
• Roth conversion has been repealed.
• Taxation of Pass Through entities, incomes from which are taxed at partner/ member/shareholder level, is given a break with a 20% deduction. The effective rates that these partners/ members/shareholders will pay tax is 29.6% at the highest level of income. Compare that with 39.6% tax rate at the highest level of income for these partners/ members/shareholders.
• Corporate tax rate will fall from their present highest rate at 35.0% to 21%.
• Corporate Alternative Minimum Tax has been eliminated.

Why Use A CPA

According to a study released by the US Government’s General Accounting Office last year, most taxpayers, 77 percent of 71 million taxpayers, believe they benefited from using a CPA. Whether you’re an individual or a business, managing taxes can be a struggle. That’s where CPAs, or certified public accountants, can help you. No matter what your needs, the staff at Tim & Associates is here to help you reduce your tax liability and achieve the best possible outcomes from your financial situation. Many people opt to utilize computer software in order to file their tax return, but with ever changing and complex tax laws, there are many different deductions that can be missed. Working with a CPA provides you with the knowledge and skill to make sure your taxes are fully and properly filed.

Here’s what you get when you choose Tim & Associates:

Professional Tax Preparation: Your tax return will be reviewed by our tax preparation software and the professionals in our CPA firm to identify potential problems. We try to eliminate math and matching errors that generate IRS and state notices.

Faster Refunds: Your tax return will be filed electronically to generate faster refunds and eliminate the headaches of a paper return.

Lower Tax Liability: We’ll point out planning opportunities that lower your tax liability moving forward. Effective planning can significantly reduce your tax liability.

By choosing Tim & Associates, you are choosing to work with a master in taxation and opting for a professional staff full of tax professionals. With over 24 years working at the IRS, Tim & Associates knows tax code inside and out and is able to help protect your from any potential tax problems. In addition, we can help you address any tax concerns that you may have and provide you with effective solutions to your tax problems.

Free Initial Tax Consultation

If you are in a tricky situation with your taxes such as being contacted by the IRS, having received tax liens or notices, then you need the help of the experts at Tim & Associates. Contact our CPA firm today for a free, initial 30 minute consultation to discuss your specific tax needs.