Wolterman Law
 
 

WOLTERMAN BLOG

Tax Reform Legislation 2017: Changes in Tax Reforms
Thursday, October 11, 2018

After nearly three decades, the government has passed a bill that affects the taxes that are paid by taxpayers. However, these legislations apply for the year 2018. Considerable changes have been made to individual income tax, gift and estate tax, and corporate tax.

To keep you up-to-date with the recent changes made by the government and to keep you aware of what you have to pay from the year 2018, we have listed some of the major changes below.

Individual Income Tax

The bill did not change the seven tax brackets, but it lowered some of the tax rates. It also altered the income thresholds at which the rate is applied. The previous brackets were 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. The new brackets are now: 10%, 12%, 22%, 24%, 32%, 35% and 37%.

It is said that the marginal income tax rates will go back to their original rates — the 2017 ones — in the year 2026.

Corporate Tax

The corporate income tax will be lowered to 21 percent starting 2018.

Sole proprieties, partnerships, and limited liability companies will be taxed at individual tax rates only and will be able to deduct a 20 percent deduction of qualified business. However, certain industries like health, law, and other professional services like law, consulting, and accounting are excluded from this. This pass-through business deduction is only applicable for joint businesses that have an income above $315,000 and for individual businesses that have an income above $157,500. This provision is said to expire on December 31, 2025.

All of the above means that your business can only benefit if you have many employees. It’s actually a reform to encourage companies to hire more employees and expand their business.

Estate and Gift Tax

The federal state tax is the same, but the estate and gift tax exemption has doubled. From 2018 onwards, married individuals filing together will have an increased standard deduction of $22 million. Individuals filing separately can shield up to $11 million. This exemption is said to lapse after 2025.

Other Changes

Those who buy a house in 2018 will only be allowed a deduction interest up to $750,000 in mortgage debt. This was $ 1 million previously.

Child tax credit increased from $1,000 to $2,000. There is also a new, non-refundable $500 credit for non-child dependents, which was not there previously.

These tax changes are complicated and difficult to remember. Well, don’t worry and contact us. We can help you with all Ohio Department of Revenue and federal IRS taxation matters.



 
 
Subscribe To Our Blog

Blog Categories

  • General Interest
    • 12/06/2018 - Everything You Need To Know Ab
    • 11/08/2018 - Why one should hire an estate
    • 10/11/2018 - Tax Reform Legislation 2017: C
    • 09/13/2018 - The Difference Between Tax Avo
    • 08/16/2018 - When you might need an attorne
    • 07/19/2018 - Why Hiring a Lawyer is Always
    • 07/16/2018 - 2018 Hope for the Future Schol
    • 06/21/2018 - 5 Reasons for Hiring a Persona
    • 05/24/2018 - 5 Qualities That Make a Law Fi
    • 04/19/2018 - Everything to Know If Your Med
    • 03/21/2018 - 5 Times You Should Think About
    • 02/15/2018 - 3 Reasons Why You Should Hire
    • 01/18/2018 - Why is It Important to Have a
    • 08/02/2017 - 3 Ways to Invest in Real Estat
    • 07/02/2017 - Estate Planning for the Young,
    • 06/02/2017 - Benefits of a Non-Disclosure A
    • 05/02/2017 - Easements 101 – What Exactly I
    • 03/29/2017 - Choosing Commercial vs Residen
    • 12/03/2016 - Happy Holidays!
    • 11/30/2016 - What is a Non-Disclosure Agree
    • 10/18/2016 - Strategies for Handling a Tax
    • 09/23/2016 - Real Estate Law: The Legal Asp
    • 08/14/2016 - Questions to Ask Your Business
    • 07/14/2016 - Starting a Business? You’ll Ne
    • 06/16/2016 - Estate Planning Primer
    • 05/12/2016 - The Basic Differences Between
    • 04/15/2016 - Monday is Tax Day: What to Do
    • 03/16/2016 - Small Business Owners and Comm
    • 02/15/2016 - Business Law: Guidelines for S
    • 10/27/2015 - Top Legal Dramas Roundup
    • 09/10/2015 - More Outlandish Tax Deductions
    • 08/19/2015 - Why it’s Necessary to Have a W
    • 07/10/2015 - A Part of Real Estate Symbolis
    • 06/15/2015 - Offbeat Tax Deductions and Tax
    • 05/21/2015 - Bizarre Estate Planning Outcom
    • 04/07/2015 - The Ins and Outs of Being a Ta
    • 03/11/2015 - More on What We Do
 
 
HOME
FIRM OVERVIEW
ATTORNEY PROFILES
PRACTICE AREAS
CONTACT US


© 2018. WOLTERMAN LAW OFFICE.
All Rights Reserved


Disclaimer | Site Map | Privacy Policy

Like us on Facebook Follow us on Twitter  Find us on GoogleFollow us on LinkedInBlog
  ABOUT WOLTERMAN LAW

Wolterman Law Office LPA

Wolterman Law Office LPA provides legal counsel for clients in Hamilton County, Warren County, Clermont County and Butler County in Southwest Ohio, including communities such as Loveland, Cincinnati, Mason, West Chester, Blue Ash and Milford.
    CONTACT INFO


  WOLTERMAN LAW OFFICE, LPA
434 W Loveland Ave
Loveland, OH 45140


Phone: 513-488-1135
Fax: 513-322-4557

Steven Richard WoltermanReviewsout of 1 review