Alisa Kim O’Neil, JD, CTFA, Director of Estate & Financial Planning

“The Unified Framework for Fixing Our Broken Tax Code” was unveiled on September 27, 2017 by the GOP leadership.

The highlights of the GOP’s proposals are as follows:

 

FOR INDIVIDUALS/FAMILIES:

  • Lower rates for individuals and families. 
  • Double the standard deduction and enhance child tax credit.
  • Repeal of the alternative minimum tax.
  • Eliminate many itemized deductions, including real estate taxes and state income taxes, but keep incentives such as home mortgage interest and charitable contributions.

CORPORATIONS:

  • Creates new lower tax rate and structure for small businesses.
  • Creates lower corporate tax rate.
  • Allows expensing of capital investments – for at least five years, businesses will be able to immediately write off or expense the cost of new investments. 
  • Imposes a one-time, low tax rate on wealth that has already accumulated overseas so there is no tax incentive to keeping the money offshore.

ESTATE & GIFT TAX:

  • Repeal death tax and generation-skipping transfer tax. 

If you would like to read more details on the Tax Reform, please see the below link:

https://www.treasury.gov/press-center/press-releases/Documents/Tax-Framwork.pdf.

This is now on its way to Congress for lively debate and discussion on both sides of the aisle. 

If you have any questions on how these proposals may affect your individual tax planning, please contact our Estate and Financial Planning Group or your tax professional.

Important: This article does not contain any legal or tax advice. You should always consult with your attorney, accountant or other professional advisors before changing or implementing any tax, investment or estate planning strategy.

IRS Circular 230 DisclosurePursuant to IRS Regulations, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter address herein. 

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