-Editor's Commentary-

There are a lot of changes in the new Tax Cuts & Jobs act which was signed into law on December 22 2017. You can use this commentary as a high level overview of some of the most significant items in the new act. Because major tax reform like this happens so seldom, it may be worthwhile for you to schedule a tax planning consultation early in the year to ensure you reap the most tax savings possible during 2018.

2017年12月22日已簽署成為法律新的減稅及就業法案發生了許多變化. 您可以使用本評論作為新法案中某些最重要項目的概覽. 由於此類重大稅務改革很少發生,您可能有必要在年初安排稅務規劃諮詢來確保您在2018年期間獲得最多的省稅.

Highlights of the Tax Cuts and Jobs Act.
減稅及就業法案的重點強調

How these tax changes may affect you?
這些稅收變化將如何影響你？

On average, the Tax Cuts & Jobs Act would benefit the middle class more than the wealthy. Those earning between $20,000 and $30,000 would see a 10.4% decline in taxes. Those earning between $50,000 and $70,000 would see a 7.1% decline in taxes.But some household would see a tax increase due to loss of deductions. In 2019, taxes would increase for 13.8 million households earning less than $200,000 a year.

Alternative minimum tax stays, but, modified.
替代性最低稅保留, 但, 有所修改.

Alternative Minimum Tax stays but will be modified. Exception amounts under the bill are increased from their 2017 levels of $84,500 for MFJ and $54, 300 for other filers to $109,400 and $70,300 respectively. The threshold at which the exemption amount phases out would also be increased. In 2017, the phaseout for MFJ begins at $160,900 while for other filers this begins at $120,700. These amounts would be increased to $1 Million and $500,000 respectively. However there is a new section that states you are now allowed to use the 20% Qualified business Income Deduction against AMT. The corporate alternative minimum tax is repealed.

The new 20% qualified business income deduction.
新的20%合格營利收入扣除.

The New 20% Qualified Business Income Deduction. For business entity flow through and stand alone rental properties reported on Schedule E and Trust & Estates. Section 199A provides that if your taxable income for the year, not adjusted gross income, is less than the "Threshold Amount" for the year, then you can simply ignore the two w-2 based limitations and take the 20% deduction. The "Threshold Amounts" for 2018 are $315,000 for MFJ and $157,000 for all other taxpayers.

Temporary 100% expensing for certain business assets.
暫時性的某些商業資產100%作為開銷.

For the next five years, the Act will allow business to immediately expense the full cost of most assets; generally, an asset with a life of 20 years or less (known as 100% expensing for a little over 5 years). Phases down from 100% "bonus" depreciation by 20% per year starting in 2023 for property acquired (old or new, but, first used by business) before September 23, 2017, and placed in service after September 27, 2017. The Act also removed the rule that made bonus depreciation availbable only for new property.