Tax Cuts And Jobs Act (TCJA)

 

After many decades, the new Federal Tax Cuts And Jobs Act (TCJA) that is effective for tax year 2018 has changed significantly in terms of new formats and new tax laws. TCJA impacts deeply to both personal and business taxes.

 

Personal Income Taxes 

 

Below are some deductions that will disappear under the Tax Cuts & Jobs Act:

  • Personal Exemptions

  • Unlimited State & Local Tax Deductions

  • A $1 Million Mortgage Interest Deduction

  • Unreimbursed Employee Expenses

  • Miscellaneous Itemized Deductions

  • Moving Expense Deductions

  • Alimony Deductions

  • Specified Personal Casualty Loss Deduction

Business Income Taxes

  • C-Corporations will have a new flat tax rate of 21%

  • Pass-Through businesses such as Sole Proprietor, LLC, Partnership, S-Corporation and Trust and Estates will see some net profit tax savings under Section 199A if they meet requirements of Qualified Business Income (QBI) deduction.

  • In general 20% of taxpayer's QBI up to $315,000 taxable income for Married Joint Filings or $157,500 taxable income for all other taxpayers can be deducted as nontaxable. However, the Internal Revenue Service has restricted the 20% QBI deductions with some other limitations. (*)  

(*) With so many changes in the new federal tax laws, you should plan and discuss your tax situations with your trusted tax advisor. 

Logo 1.png
Contact Us

The CPA Corner, Inc.

Certified Public Accountant 

​​​​4000 Barranca Parkway, Suite 165, Irvine 92604

Office: (949) 387-4321

(We Are Fully-Booked For The Tax Season)

(Office Is Temporarily Closed Until 04/20/20) 

  • Facebook App Icon
Government Links
    Members
AICPA.jpg

Our Clients are from Northern California - Southern California - Los Angeles County - Orange County - Riverside County - San Diego County - Pasadena - Glendale - Santa Monica - Irvine - Fountain Valley - Laguna Niguel - Laguna Beach - Laguna Hills - Laguna Woods - Lake Forest - Dana Point - Newport Beach - Newport Coast - Mission Viejo - Costa Mesa - Anaheim - Anaheim Hills - Aliso Viejo - Huntington Beach - Fullerton - Garden Grove - Lake Forest - City of Orange - Seal Beach - Long Beach - Tustin - Westminster - San Clemente - Santa Ana - San Juan Capistrano - Rancho Santa Margarita - Coto De Caza - Brea - Yorba Linda - Buena Park - Cypress - La Palma - Placentia - Anaheim Hills - Rancho Santa Margarita - Stanton - Oceanside - La Mirada - Cerritos - Baldwin Park - El Monte - Lakewood - Manhattan Beach - Fontana - Chino Hills - Ontario - Rancho Cucamonga - Lake Arrowhead - Redlands - Other States 

Copyright © 2020 The CPA Corner, Inc. | 4000 Barranca Parkway, Suite 165, Irvine CA 92604 | Federally Registered With All Rights Reserved.  No part of

this site may be reproduced, stored in a retrieval system or transmitted in any way or by any means without the written permission of The CPA Corner, Inc.