On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act into law, which makes a number of changes to the federal tax laws.

The recently signed Tax Cuts and Jobs Act includes far-reaching changes for all United States taxpayers, including individuals, corporations, corporations with substantial international business, and small businesses. Substantial changes include:

Individuals

• Standard Deduction increased for single / married filers from $6,350 / $12,700 to $12,000 /$24, 000
• Child Tax Credit increased from $1,000 to $2,000
• Personal exemption Eliminated (previously $4,050 per Taxpayer / Dependent)

Corporations (for holdings within the U.S.)

• Corporate Tax Rate reduced from 35% to 21%
• Alternative Minimum Tax Eliminated

Corporations (for holdings outside the U.S.)

• The Tax Cuts and Jobs Act radically changes the current worldwide taxation model of taxing foreign source income and replaces it with a modified territorial system.

Small Businesses

• 20% deduction for qualified income, after which individual rates apply. Note, there are limitations for professional service providers such as lawyers and accountants.

In light of the changes to the tax laws, this is a good time to review your tax plan to determine whether changes are needed. Please note: The Tax Cuts and Jobs Act is over 1,000 pages long. We can provide only a short summary of a few highlights here. Other provisions of the Act may have a material impact on you.