Trump Tax Plan – 8 Key Income Tax Provisions:
1) It eliminates personal exemptions which could result in families with many children paying higher taxes
2) It eliminates most itemized deductions such as moving expenses, alimony payments, etc.
3) It limits the deduction on mortgage interest to the first $750K of the loan and interest on home equity line of credits can no longer be deducted
4) Taxpayers can deduct up to $10K in state and local taxes. They must choose between property taxes, and income or sales taxes.
5) It expands the deduction for medical expenses
6) It repeals Obamacare tax on those without health insurance in 2019
7) it doubles the estate tax exemption from 11.2 million to 22.4 million and it keeps the alternative minimum tax but increases the exemption
8) it increases the child tax credit and it allows parents to use 529 savings plans for tuition at private schools
Trump Tax plan – 10 Key Business Tax Provisions:
1) It limits corporations’ ability to deduct interest expense to 30% of income.
2) It allows businesses to deduct the cost of depreciable assets in one year instead of amortizing them over several years.
3) It stiffens the requirement on carried interest profits from 39.6 percent of income to 23.8 percent.
4) It eliminates the corporate Alternative Minimum Tax
5) It allows drilling in the Arctic National Wildlife Refuge
6) It cuts deductions for orphan drug research from 50% to 25%. Orphan drugs target rare diseases
7) The Act cuts taxes on beer, wine, and liquor
8) It allows companies to repatriate $2.6 trillion they hold in foreign cash stockpiles. They pay a one-time tax rate of 15.5% on cash and 8% on equipment.