(715) 276-9996
Accounting News
Advice and Developments

2018 Individual Tax Law Changes
Tax rates are going down:
2017 2018
10% 10%
15% 12%
25% 22%
28% 24%
33% 32%
Increase in Standard Deduction: 24,000 for MFJ; 18,000 for HH; 12,000 for Single
The personal exemption is being eliminated.
Increase in Child Tax Credit $2000
No deduction for alimony payments executed after December 31, 2018
Medical expense deduction floor is changing to 7.5%
Moving expense deduction eliminated except for Military
Mortgage interest deduction is allowed on the first $750,000
Home equity loan interest will no longer be deductible
State, local and real estate taxes not to exceed $10,000 total
All miscellaneous itemized deductions subject to 2% floor under current law are repealed
Student loan discharged after disability or death not included in taxable income
Basic exclusion for estate and gift tax is 10 million which is doubled
Repeal of individual healthcare mandate, no penalties on tax return starting 2019
AMT threshold increased to 1 million for MFS and $500,000 for all other taxpayers

2018 Business Tax Law Changes
Corporate AMT is eliminated
Corporate Rate reduced to 21%
Section 179 increased to 1 million
Bonus depreciation allowance increased to 100% for property placed in service after 9/27/17 and before 1/1/23. Also allows on used property
Vehicle depreciation for business use is increased to $10,000 for the first year of service, $16,000 for the second year, $9,600 for the third year and $5,760 for each subsequent year
Entertainment expense to go away, only meals allowed
Domestic production activities deduction is repealed
Non-real property like kind exchanges are gone
New temporary credits for employees who are on family medical leave
R & D stays but requires five-year amortization of R & D expenditures
NOL’s limited to 80% of taxable income for losses beginning after December 31, 2017. Also denies the carry back for NOL’s in most cases
Pass through income deduction, individuals would be allowed to deduct 20% of “qualified business income”