Update on tax bill?
Started by caligas
Just keep churning out them cases bro
So you’re saying that no matter what’s in the tax plan, earn more to keep more.
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I can't imagine that the Republicans would release the text of the final bill to ordinary citizens until it's too late to read and comment. But from what I've read, I don't think there are going to be changes on the S Corp front from the Senate plan. If you're married and make more than $529,000 combined, there is strong incentive to cut back on work. The marginal tax rate in the $529000-624000 range effectively becomes 70-85%.
http://www.taxpolicycenter.org/sites/default/files/figure_12.7.17_0.png - a helpful chart
http://www.taxpolicycenter.org/sites/default/files/figure_12.7.17_0.png - a helpful chart
Browsing google...Phase out reduced to like 300's rather than 500 (joint married)
Motherf$&@. Of course.
Ugh, I see that as well. Phase-out begins at $315000 for married couples, which might imply a high marginal tax rate on income in 300's and low 400's if it's still structured to phase-out like the prior plan. With the prior plan, the changes in pass-through taxation balanced the reduction of my SALT deduction to $10000. Now I'm potentially looking at a massive tax increase, although elimination of the AMT might save the day.
I read that they added corporate and personal AMT back into the bill during negotiations.
So much for being able to do our taxes on a postcard.
I read that they're getting rid of the corporate AMT. A lot of good that does me. Haven't found anything about the personal AMT.
Who knows, seems like it changes hourly, they’ve had to change things to get Rubio and Corker on board. Last I heard personal AMT was added back, but the income exempted will be higher. It didn’t give any income level for that.
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I read the personal amt was over 750k or 1 million. We'll see.
Can read for yourself: http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
Page 674 has the final language on AMT. Larger exemption from the past and the phaseout is at 1 million which looks good.
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Full text of the conference committee bill
http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
D
deleted162650
Just got an email from our CPA's saying that personal AMT doesn't come into play until 500k for single or 1M married.
Wow that’s huge.
The conference agreement temporarily increases both the exemption amount and the exemption amount phaseout thresholds for the individual AMT. Under the provision, for taxable years beginning after December 31, 2017, and beginning before January 1, 2026, the AMT exemption amount is increased to $109,400 for married taxpayers filing a joint return (half this amount for married taxpayers filing a separate return), and $70,300 for all other taxpayers (other than estates and trusts). The phaseout thresholds are increased to $1,000,000 for married taxpayers filing a joint return, and $500,000 for all other taxpayers (other than estates and trusts). These amounts are indexed for inflation.
The only reason most of you had to pay AMT was a large SALT deduction. I wouldn’t celebrate that much.
This is true, but AMT cost me a lot more than my SALT deduction according to these calculators people are putting out. This whole tax bill is still a boondoggle though.
Me too, I’ve always lived in lower tax states.
There’s been lots of changes since I talked to my CPA last, I am not sure how I’m going to come out now with the most recent changes.
Pardon my ignorance but when do we expect these changes to take effect?
Effective January 1 2018
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I am in south carolina. I am getting a tax cut as are most anesthesiologists. We do have a 7% state income tax though (which for a "red" state is oretty high). Even with the state income tax I used the new committe tax plan and I come out ahead.
I hope that’s the case for me, my property taxes are high because my county assesses extra tax on acreage above 1.
So it’s possible that if I am making $400k, w/$100k of that through S Corp, that I am pretty much wasting my time making the last $100k or so, paying marginal rate upwards of 80%?
The cutoff for single filers is now $157,000! Mother....fuc k er. Unbelievable, a 70% marginal tax on people barely cracking six figures while corporations making tens of billions get 21%.
I hope we all enjoy the tax cuts while our nation drowns in massive debt.
What tax cuts. does it even benefit an avg anesthesiologist making 300k
If the republicans have taught us anything it is that we can just undo everything that was done by the previous administration. Every 4-8 years we get to go back to 4-8 years ago. Murrrca
Assume married couple ttl income 500k with only deductions 37k 401k plan and the standard 24k.
After applying the income brackets I get around 22% effective tax rate. If I eliminate the deductions and apply to the entire 500k I get 24%.
Compare that to this year with all the salt deductions and what not and I think I will pay the 26/28% amt.
Seems like coming out ahead?
Sadly, your CPA doesn’t know what he’s talking about. The 500k and $1M thresholds are where the $109k AMT exemption phases out. Your AMTI (income for AMT purposes) is your AGI minus the AMT exemption. You’ll keep the exemption and a mortgage deduction. You’ll pay 26% on the next $188k and 28% on the rest. AMT still definitely in play for me and makes the entire pass through discussion meaningless.
See page 145
http://docs.house.gov/billsthisweek/20171218/Joint Explanatory Statement.pdf
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So the AMT wipes out the savings related to pass through? WTF!
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Ugh. FML. Was thinking about becoming S Corp after this but it sounds like I should just remain as sole proprietor.
