On September 27 of this year Congressional Republicans and President Trump released their plan for tax reform.
You can read whole thing at this link: https://www.treasury.gov/press-center/press-releases/Documents/Tax-Framework.pdf
The main points of the so-called Unified Framework are as follows:
-Standard deductions will be increased.
-There will be three tax brackets (12%, 25% and 35%) instead of the current seven.
-The alternative minimum tax will be abolished. (Finally.)
-Most itemized deductions, including state and local taxes, will be eliminated. , including for state and local taxes.
-A repeal of the estate tax.
-There will be a a 25% top tax rate for “small and family-owned” proprietorships, partnerships and S corporations.
-The corporate tax rate would be reduced to 20%.
-It will allow expensing of capital investments other than structures for at least five years.
-Reformation of the taxes on international corporations.
Obviously we don’t want our clients adjusting their personal finances based upon a tax plan that has not been enacted, but such developments are worth monitoring! Stay tuned…