Two of Arcadia Rotary’s Ace Accountants gave an update on the new tax law. Gil Stromsoe discussed changes in the areas of tax rates, increases in standard deductions, child tax credit and new dependent credit. The maximum individual rate is reduced to 37% and the corporate rate is now a flat 21%. He discussed deductions that will disappear under the new law such as state income tax and property taxes above $10,000, moving expenses, employee business expenses and some mortgage interest. Some new benefits are available for individuals such as changes in medical expense thresholds, an increase in the alternative minimum tax threshold and a doubling of the estate tax exclusion.
Jim Rider informed us of the complexities of the new law. It has many pages and lots of the areas are confusing. The new law will see 75% of individuals getting a decrease in their payments, while 25% will see an increase. Individuals and businesses will have to work with their tax preparers to determine the steps that should be taken to take advantage of the new law.