Copyright 2019 - Pfeiffers Accounting & Consulting LLC
  • Doubles estate tax exemption. Estate taxes will apply to fewer people, with the exemption doubled to $11.2 million ($22.4 million for a married couple).
  • Reduces pass-through business taxes. Most owners of pass-through entities such as S corporations, partnerships and sole proprietorships will see their income tax lowered with a new 20 percent income reduction calculation.
  • Cuts some above-the-line deductions. Moving expense deductions get eliminated except for active-duty military personnel, along with alimony deductions beginning in 2019.
  • Weakens the alternative minimum tax (AMT). The bill retains the alternative minimum tax but changes the exemption to $109,400 for joint filers and the phaseout threshold to $1 million. The changes mean the AMT will affect far fewer people than before.
  • Expands use of 529 education savings plans. Tax-deductible contributions to 529 education savings plans can now be used to pay tuition for students in K-12 private schools.
  • Suspension of miscellaneous itemized deductions subject to 2% of AGI. These categories of deductions will no longer be deductible subject to 2% of AGI through December 31, 2025: 1) Unreimbursed employee expenses, 2) Tax preparation fees, 3) Other expenses ie fees to collect interest and divindends, appraisal fees for casualty loss or charitable contributions, excess deductions allowed a beneficiary on termination of an estate

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