Individual Tax Update (SMTX32/19)

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Event Description

This course reviews the highlights of the Individual portion of the HR1-Tax Cuts and Jobs Act. Topics include an overview of the new tax rates and how reform has affected accounting methods for business income.

Major Subjects

Basic Functional Changes: Increased standard deduction, removal of personal exemption, and inflation adjustments Reform of Individual and Family Tax Credits: Child tax credit, elderly and permanently disabled, repeal of electric and plug in motor credit and higher education credit reform

Individual Items: Loss limitations for taxpayers other than corporations; Repeal of deduction of student loan interest, and qualified tuition; Repeal of exclusion of interest on US savings bonds for higher education; Repeal of deductions for Alimony; Termination of deductions for medical savings accounts; and, Repeal of exclusion of adoption assistance programs

Itemized Deductions: Repeal of overall limitation of itemized deductions; Modifications to home interest deduction; Modification of taxes paid, not from a trade or business; Modifications to charitable contribution limitations; Repeal of various miscellaneous deductions, especially 2106; and, Repeal of deduction for medical expenses (after 2018)

  • Modifications and Reforms to Retirement
  • Modifications to Alternative Minimum Tax
  • Elimination of Shared Responsibility Payments (2019)
  • Deductions for Income from a Trade or Business: Simple rules, income-based rules, and professional service-based rules

Discussion Leader

Anthony Rocca, CPA