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ThayerONeal “The Top 5 Changes to Trumps TAX PLAN that every Taxpayer should know”

posted November 08, 2017

There are over 20 “new” changes to President Trump’s Tax Plan, John Thayer, CPA highlights the top 5 that every tax payer should know.

  1. It increases the standard deduction from $6,350 to $12,000 for single filers from $12,700 to $24,000 for married couples.
  2. It reduces the 7 tax brackets ( 10,15, 25, 28, 33, 35 and 39.6 percent) to 4 tax brackets of 12 percent (up to $90,000 to $260,000), and 35 percent ($260,000 to $1,000,000) and 39.6 percent ($1,000,000 and above).
  3. It repeals the “death tax”, the federal estate tax which applies to the transfer of property at death on estates worth $5,490,000 or more. “Beware”, says John Thayer, because “it eliminates the ability to step up the basis on inherited property.”
  4. Reduces the corporate tax rate form 35 percent to 20 percent.
  5. Limits the debt that can be deducted to 30 percent of earnings before interest/taxes/depreciation/amortization (EBITDA).

One last note: “The Tax Plan could kill the market for homes over $500,000 as you could only deduct interest on the 1st $500,000” says John Thayer, CPA.

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