2018 TAX CUTS & JOBS ACT

Posted by Doreen Higgins on Mar 26, 2018
“Generally”, Steven Arkin told us on Wednesday morning, “Everyone will benefit.”  He went on to tell us some of the many details involved.  Steven is a CPA with accounting degrees from George Washington and Savannah State Universities.  He warned us that when a government passes a tax law quickly, as this government did, there may be afterthoughts. There may be deficits which will then be rectified by further changes, perhaps not so benign as the original ones.
First, individual taxes: for those filing a single or a joint return, taxes will go down.  Capital gains remain the same and qualified dividends remain at 15%.  Personal and dependents’ exemptions are gone.  There are changes in charitable donation, medical and alimony deductions and in moving expense deductions. There are new regulations for IRA’s and retirement plan loans. Some of the bigger changes come in standard deductions, AMT and ACA responsibility, child tax credit and 529 plans.  Some of the most pain will be found in rules governing home mortgage interest and property and sales taxes and state taxes.
 
Second, businesses: this is a very complicated subject for a brief presentation and more difficult for a non-accountant (the writer) to report.  Steven gave us details by means of examples, such as a professional couple owning a business, one spouse working as a consultant while another runs a different business, and so on, so that we could get some idea of expected changes. This detail addressed such matters as operating expenses, real estate issues, meals and transportation deductions, depreciation, and much more.
 
Steven made his presentation to a gathering of mostly professional people, some retired, some working. Each had his or her own financial circumstances, family status, business and or retirement incomes, and many other issues. But change is in the air!  It is obviously desirable to consider consulting a tax professional; Steven told us he is ready!
 
Below is a photo of Steven Arkin