Important US Tax Updates
September 26, 2018by Frontier Group
| Rates (Single) | 37% – over $500,000 |
| Rates – Married Filing Jointly & Surviving Spouses | 37% – over $600,000 |
| Rates – Married Filing Separately | 37% – over $300,000 |
| Rates – Heads of Households | 37% – over $500,000 |
| Standard Deduction | Single and Married Filing Separately – $12,000 Married Filing Jointly & Surviving Spouse – $24,000Heads of Households – $18,000 |
| Personal Exemption | Eliminated |
| Medical Expense Deduction | Medical expenses are deductible in excess of 7.5% of adjusted gross income. |
| State and Local Tax Deduction | Deductions for state and local taxes will be capped at $5,000 |
| Mortgage Interest Deduction | capped at purchases of $750,000 for mortgages |
| Miscellaneous Itemized Deductions | Eliminated |
| Estate Tax | Exemption Amount Doubled |
| Gift Tax | Exemption Amount Doubled |
| Carried Interest | The final bill provides for a three-year holding period in order to receive long-term capital gains treatment. |
| Participation Exemption System | |
| 100% Dividends Received Deduction for 10% U.S.-Owned Foreign Corporations | Provides a new 100% deduction for the foreign-source portion of dividends received from certain 10% owned foreign corporations by U.S. corporations. |
| Changes to Implement “Participation Exemption System” | U.S. shareholder of any “controlled foreign corporation” must include in gross income for a taxable year its GILTI. |