Important US Tax Updates

September 26, 2018by Frontier Group
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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.

Frontier Group