Tax Reform Updates: Keeping You Informed 

President Donald Trump signed tax reform legislation into law on Dec. 22, 2017. The final bill reflects three minor changes relative to the House and Senate conference committee agreement, including removal of a rule permitting use of a 529 savings account for home-schooling expenses, an update to the title of the billand a change to the criteria for imposing a new excise tax on endowments of private colleges and universities. The VSCPA is offering the following resources and educational offerings:


In-Person CPE

  • Best Federal Tax Update, 8 a.m. – 3:30 p.m.
    This course will keep you up-to-speed on all recent developments regarding tax reform as well as major trends and changes in case law.
Don Farmer, CPA, will be presenting an 8-hour update seminar! Choose from the options below: 


Online CPE


Overview of Changes


Current Law New Law 
Personal rates Seven brackets: 10%, 15%, 25%, 28%, 33%, 35%, 39.6% Seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Personal long-term capital gains and qualified dividend rates Up to 23.8% Unchanged; rates tied to existing taxable income thresholds
Maximum pass-through tax rate 39.6% Ordinary rates with deduction of 20% of qualifying domestic income; limited deduction for income from lower-income service businesses, excluding engineers and architects
Maximum corporate tax rate 35% 21%
Personal standard deduction

Married filing jointly: $12,700
Head of household: $9,350
Single: $6,350

Married filing jointly: $24,000
Head of household: $18,000
Single: $12,000
Child tax credit $1,000 per child

$2,000 per child (refundable to $1,400 per child)
$500 for non-child dependents

Personal exemption $4,050 Repealed
Personal state income, sales tax and property tax Allowable as itemized deduction Deduction for property tax and either income or sales tax limited to $10,000
Mortgage interest Deductible on up to $1.1 million of debt; interest on second home deductible Deductible on up to $750,000 of debt, including second home; no home equity interest deduction
Individual Alternative Minimum Tax (AMT) Imposed when minimum tax exceeds regular income tax Increases AMT exemption amounts and phase-out
Medical expenses Deductible to the extent they exceed 10% of adjusted gross income (AGI) Deductible to the extent they exceed 10% of AGI (7.5% of AGI for 2017 and 2018)
Alimony Deductible to payor, taxable to recipient Not deductible to payor, not taxable to recipient for decrees executed or modified after 2018
Individual health insurance mandate Individuals penalized for failure to carry minimum essential health insurance coverage Repealed
Depreciation Fixed assets generally capitalized and depreciated; in some cases, Section 179 immediate expensing of up to $500,000 is available Immediate expensing of most new and used property (excluding structures) through 2022; Section 179 limit increased to $1 million
Net operating losses (NOL) Generally carried back two years and forward 20 years Carryback repealed except for farms, which are left at two years; indefinite carryover deduction limited to 80% of pre-NOL income for losses generated after 2017
Excess business loss No provision Net business losses in excess of $500,000 ($250,000 single) not deductible and become an NOL carried over to the next year
Business interest Generally deductible Generally limited to the extent that interest exceeds 30% of income, unlimited carryover of excess. Determined at entity level, but spillover effects to owner. Limitations not applicable if average annual gross receipts do not exceed $25 million
Cash method of accounting Generally limited to businesses with less than $1 million, $5 million or $10 million in receipts, depending on facts Expanded to include businesses with less than $25 million in receipts with special rules for tracking inventory costs
Domestic production activities deduction Domestic producers eligible for deduction equal to 9% of qualifying income Repealed after 2017
Corporate AMT 20% Repealed after 2017; AMT credits refundable from 2018-2021
Gift and estate tax Tax of up to 40% imposed on gifts and estates, subject to $5.49 million lifetime exemption per spouse Lifetime exemption doubled, estate tax remains in effect, step-up in basis retained

News & Resources​​

AICPA Tax Reform Webcast

A Dec. 22 webcast from the AICPA summarizing changes included in the tax reform bill. NOTE: No CPE credit will be given for viewing this webcast.

Tax Bill: How 4 Healthcare Measures Weathered Reconciliation

From a lynchpin of the Affordable Care Act to a decades-old drug research tax credit, lawmakers had considered several provisions that would impact healthcare. Not all survived. The healthcare impacts of the GOP’s tax reform plan came into focus...

President Trump Signs Tax Reform Into Law

President Donald Trump on Friday signed into law H.R. 1, known as the Tax Cuts and Jobs Act, which makes widespread changes to the Internal Revenue Code. Almost all of its provisions, including a lower corporate tax rate of 21 percent and lower...

Tax Reform Passes Both Houses of Congress, Moves to Trump's Desk

This week, both houses of Congress passed a tax reform bill titled “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” also known as the Tax Cuts and Jobs Act....

Tax Reform Bills Pinch Nonprofit Hospitals with Pricier Debt

Nonprofit hospitals came up for air last month as the House passed its version of the tax reform bill. One provision, in particular, pertaining to tax-exempt bonds threatened to drive up the cost of debt for capital improvement projects slated to...

Senate Passes Tax Reform Bill, but it Isn't Over Yet

On Saturday, Dec. 2, in the early morning hours, the Senate voted to pass the “Tax Cuts and Jobs Act,” after vigorous debate and a number of amendments. The bill, which needed only 50 votes to pass (with Vice President Mike Pence as a...

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The Virginia Society of CPAs (VSCPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org.

For more information regarding refund, complaint, program cancellation or other policies, visit vscpa.com/CPEPolicies or call (800) 733-8272.

The Virginia Society of CPAs (VSCPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org.

For more information regarding refund, complaint, program cancellation or other policies, visit vscpa.com/CPEPolicies or call (800) 733-8272.

The Virginia Society of CPAs (VSCPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org.

For more information regarding refund, complaint, program cancellation or other policies, visit vscpa.com/CPEPolicies or call (800) 733-8272.

The Virginia Society of CPAs (VSCPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org.

For more information regarding refund, complaint, program cancellation or other policies, visit vscpa.com/CPEPolicies or call (800) 733-8272.