Fenner, Melstrom & Dooling PLC
Accountants who think like business owners.
We are your strategists, advisors and confidants.
We treat your business like our own: spending time at your facilities, participating in your planning and assigning senior professionals to guide you.
Our ultimate goal is to help you make more money. Working with us, you will learn to increase earnings and keep more for yourself.
Post-Election Tax Policy Update
The election of Donald Trump as 45th President of the United States is expected to bring changes to the tax laws for individuals and businesses. During the campaign, Donald Trump released an outline of his plans, which also included a repeal of the Affordable Care Act.
Individual Taxation –
Trump proposed to compress the tax rates on ordinary income from 7 brackets to 3 tax brackets:
12% for taxable income $0 to $37,500
25% for taxable income $37,500 to $112,500
33% for taxable income over $112,500
The standard deduction would increase to $15,000 for single filers and $30,000 for married filers. This is in contrast to the 2017 standard deduction of $6,350 and $12,700, respectively. However, along with the increase in the standard deduction, personal exemptions would be eliminated, as well as the head of household filing status.
Itemized deductions would be capped at $100,000 for single filers and $200,000 for married couples filing jointly.
The current rate structure for capital gains would apparently remain unchanged; however, Trump has proposed to repeal the 3.8 percent net investment income tax imposed on passive income, including capital gains.
Other eliminations proposed include a repeal of the federal estate and gift tax (the repeal however would also disallow “stepped up basis” to shelter otherwise taxable gains of more than $10 million under the income tax), and elimination of the alternative minimum tax (AMT)