Skip to main content

  •  Tel: 805.965.0101
  •  Email: Janet@JanetBarrCFS.com
  • Contact
  • Request A Meeting
  • Portfolio Analysis
  • http://www.facebook.com/JanetBarrCFS/ 
  •  
  •  
  • ACCOUNT ACCESS

  • About 
    • Janet Barr, MS, ChFC, CLU
    • Meet the Team
  • My Affiliations 
    • Dimensional Fund Advisors
    • LPL Financial
  • Client Experience 
    • For Women Only
  • My Solutions 
    • Invest
    • Insure
    • Manage
    • Socially Responsible Investing
  • Contact

Clarity

Seeking a clearer financial vision

A Woman's Voice

Guiding you through the process 

Freedom

Taking control of your happiness

  Previous   Next

    You are here

  1. Home
  2. Blogs
  3. 5 Key Facts About the New Tax Bill

5 Key Facts About the New Tax Bill

Submitted by Wealthcare Partners of Santa Barbara on January 9th, 2018
  • Share on Facebook
  • Facebook Like
  • Tweet Widget
  • Linkedin Share Button

The enactment of the Tax Cuts and Jobs Act (TCJA) represents “the most sweeping overhaul of the U.S. tax code in more than 30 years.”1

 

For millions of Americans and businesses it means an altered financial and investment landscape with new opportunities and challenges in the years ahead. Keep in mind, however, that the information in this material is not intended as tax advice, and may not be used for the purpose of avoiding any federal tax penalties.

 

Here’s a brief look at 5 key changes:

 

Personal Taxes:

Some of the TCJA’s key provisions include a reduction in most marginal income tax brackets, near doubling of the standard deduction, and a $10,000 cap on state and local tax deduction. The Tax Policy Center projects that taxes will fall for all income groups and result in an increase of 2.2% in after-tax income. The Tax Policy Center also cautions, however, that some individuals and households may see a higher tax bill.2

 

Investments:

The TCJA did not adjust the preferential rates of 0%, 15% and 20% for long-term capital gains and qualified dividends. For example, the transition from 15% to 20% capital gains rate will continue to use the top tax-bracket thresholds of $425,800 for individuals and $479,000 for married couples.3

 

Retirement:

The tax bill introduces several key changes for business owners, including the introduction of a 20% deduction for pass-through businesses. Business owners may want to review their current business structure (C-Corp, S-Corp, and LLC) and determine what entity is best structured to help them accumate retirement assets.

 

College Savings:

529 plans may now be used to fund private elementary and secondary education (for up to $10,000 in distributions per student each year). Prior, they were limited to any eligible post-secondary institutions.4

 

Estate Strategies:

The estate tax exemption was raised to $11.2 million, a doubling of the $5.6 million that previously existed. As such, individuals benefiting from this change may want to re-evaluate the strategies they have in place to address the tax and liquidity issues that may no longer exist.


 

1. The Wall Street Journal, December 20, 2017

2. Tax Policy Center of the Urban Institute & Brookings Institution, 2017

3. Kitces.com, 2017

4. The tax implications of 529 College Savings Plans can vary significantly from state to state, and some plans may provide advantages and benefits exclusively for their residents. Please consult legal or tax professionals for specific information regarding your individual situation. Withdrawals from tax-advantaged education savings programs that are not used for education are subject to ordinary income taxes and may be subject to penalties.


 

This content was developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.



Tags:
  • jobs act
  • retirement
  • Tax Law
  • Taxes

Archived Blog

  • March 2023 (5)
  • March 2022 (3)
  • December 2021 (3)
  • June 2020 (2)
  • July 2019 (3)
  • May 2019 (2)
  • January 2019 (2)
  • September 2018 (1)
  • April 2018 (6)
  • March 2018 (1)
  • January 2018 (1)
  • May 2017 (7)
  •  
  • 1 of 2
  • ››

Categories

  • divorce (1)
  • jobs act (1)
  • Memorial Day (1)
  • money (1)
  • money myths (1)
  • Remembering (1)
  • retirement (6)
  • Roth IRA (1)
  • santabarbara (1)
  • savings (1)
  • stocks (1)
  • Tax Law (1)
  • Taxes (1)
  • women (3)
  • women in retirement (2)
  • women in transition (2)
  • woomen investors (2)

Schedule a Call

Schedule a 15 minute call

5266 Hollister Ave. #325, Building C
Santa Barbara, California
93111 United States

ADV2A  ADV2B  CRS_WCAP
  •  Tel: 805.965.0101
  •  Toll Free:
  •  Fax: 805.965.0199
  •  Janet@janetbarrcfs.com
  •  
  •  
  •  

Janet Barr is a LPL Registered Principal with and securities are offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Wealthcare Advisory Partners dba Collaborative Financial Solutions, LLC a registered investment advisor.

Collaborative Financial Solutions and Wealthcare Advisory Partners are separate entities from LPL Financial. The LPL registered representatives from

Collaborative Financial Solutions, may only discuss securities or transact business with persons who are residents of AZ, CA, MO, MT, OH, OR, PA, TX, VA, and WA.

Janet Barr | domiciled in the state of California | Principal Place of Business is: 5266 Hollister AVE STE 325, Santa Barbara, CA 93111-3047 | CA Insurance Lic# 0B33145.

Collaborative Financial Solutions © 2006-2017 All Rights Reserved

Tracking #1-412622

© 2023 Collaborative Financial Solutions. All rights reserved.

Website Design For Financial Services Professionals