Tax Cuts and Jobs Act Summary - For the 2018 Tax Year (Course Id 1320)

Taxes - Taxes for Course Id 1320

The Tax Cuts & Jobs Act ("TCJA") was approved by Congress December 20, 2017, and signed by President Trump on December 22, 2017. The Act impacts virtually every individual and business in a way not seen in over 30 years. With most provisions effective 2018, it lowers the individual and corporate tax rates, repeals numerous tax credits and deductions, enhances the child tax credit, boosts business expensing, and impacts the Affordable Care Act (ACA) by effectively repealing the individual mandate.

This course is an overview providing reference to selected individual, education, business, retirement, insurance, international and estate tax provisions enacted or indexed for inflation by the TCJA. The resulting major tax changes carry special meaning to the tax practitioner and return preparer. The course is intended to be a resource for tax professionals and staff alike to gain easy access to the most important major changes enacted by TCJA.

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 1320

As a result of studying the assigned materials of this 2018 Tax Cuts and Job Acts Summary CPE course, you should be able to meet the objectives listed below.

At the start of the materials, participants should identify the following topics for study:
* Tax bracket modifications and changes
* Individual & business tax credits, deductions & exclusions
* Education incentives
* Saving, pensions, and retirement
* Corporate & small business taxation
* Insurance provisions
* Compensation restrictions
* International provisions
* Exempt organization taxation

After reading the materials, participants will be able to:
1. Apply changes imposed by the Tax Cuts & Jobs Act (TCJA) relating to individual income taxes by identifying:
a. modifications to tax rates & the personal exemption,
b. AMT exemptions,
c. changes to the child tax credit,
d. new educational incentives & student loan discharge rules,
e. Mortgage interest & suspended deduction provisions, and
f. Alimony & estate taxation changes.
2. Point out key TCJA business provisions, including new corporate tax rates, expanded §179 expensing, denial of certain entertainment expense, and business credits.
3. Recognize TCJA changes to:
a. insurance taxation,
b. tax treatment of excess of compensation,
c. deferred foreign income provisions, and
d. exempt organization and international taxation.

Chapter 1 - Tax Cuts and Jobs Act Summary

Tax Cuts and Jobs Act of 2017

Rates, Standard Deduction, Exemptions & Credits

Individual Income Tax Rates - 7 Brackets but, Lower Rates

Unearned Income of Children - Simplified Taxation

Capital Gain & Qualified Dividend Rate

Standard Deduction Increased

Personal Exemptions Repealed

Alternative Minimum Tax Exemption Increased

New Inflation Adjustment

Business Income of Individuals - 20% Deduction

Child Tax Credit (Enhanced) & Family Tax Credit (New)

Limitation on Non-corporate Losses

Education Incentives

Education Savings Rules Modified

Discharge Of Student Loan Indebtedness Expanded

Rollovers Between §529 Tuition & ABLE Programs

ABLE Account Contributions Modified

Deductions

Overall Limitation On Itemized Deductions Repealed

Mortgage Interest Limited

State & Local Taxes (SALT) Limited

Personal Casualty Losses Repealed

Wagering Losses Limited

Charitable Contributions Modified

AGI Percentage for Cash Contributions Increased

College Athletic Event Seating Rights Repealed

Substantiation Exception for Donee Reported Contributions Repealed

Itemized Deductions Subject to 2% Floor Fully Denied

Medical Expense Deduction Temporarily Returned to 7.5%

Alimony Payment Deduction Repealed

Deduction For Moving Expenses Repealed

Exclusions

Bicycle Commuting Reimbursement Suspended

Employee Achievement Awards Exclusion Modified

Moving Expense Reimbursement Exclusion Repealed

Savings, Pensions, and Retirement

Special Roth IRA Recharacterization Repealed

Rollover Period For Plan Loan Offset Amounts Extended

Public Safety Volunteer Service Award Programs Modified

Estate and Generation-skipping Transfer Taxes

ACA Individual Mandate Repealed

Business Taxation

Corporate Tax Rate Reduced to 21%

Additional First Year (Bonus) Depreciation Increased

Luxury Automobiles Depreciation Increased

Recovery Period Of Certain Farm Property Shortened

Qualified Leasehold & Improvement Property Combined

10 Year ADS for Electing Farming Businesses

Expensing Under §179 Increased

Small Business Accounting Methods Expanded

S to C Corporate Conversion Rules Modified

Beneficiaries Of An Electing Small Business Trust

Charitable Deduction for Electing Small Business Trust

Business Interest Limited

Net Operating Loss Deduction Modified

Like-kind Exchanges Limited to Real Property

Business Capitalization Clarified

Local Lobbying Expenses Deduction Exception Repealed

Deduction For Domestic Production Activities Repealed

Entertainment Activities Or Facilities Deduction Repealed

UBTI Increased by Taxable Fringe Benefits

FDIC Premium Deduction Limited

Securities Rollover Into SSBICs Repealed

Self-Created Property Not Capital Asset

Technical Termination Of Partnerships Repealed

Increased Holding on Certain Received Profit Interests

Built-In Loss Definition On Transfer Of Partnership Interest

Limitation On Allowance Of Partner’s Share Of Loss

5 Year Amortization of Research & Experimental Expenditures

Rules for Taxable Year of Inclusion Expanded

Denial of Deduction for Certain Fines Expanded

Denial of Deduction for Sexual Harassment Settlements

Drug Credit For Rare Diseases Reduced

Rehabilitation Credit Modified

New Credit for Paid Family & Medical Leave

Bonds

Advance Refunding Bonds Repealed

Tax Credit Bonds Repealed

Insurance

Net Operating Losses Of Life Insurance Companies Changed

Small Life Insurance Company Deduction Repealed

Computation Of Life Insurance Tax Reserves

Adjustment For Change In Computing Reserves Changed

Proration of Dividends Received Deduction Modified

Special Distribution Rule for Pre-1984 Accounts Repealed

Proration For Property & Casualty Companies Modified

Discounting For Property & Casualty Companies Modified

Special Estimated Tax Payments Repealed

Capitalization Of Certain Policy Acquisition Expenses Modified

Tax Reporting For Life Settlement Transactions New Reporting

Compensation

Excessive Employee Remuneration Limitation Modified

Tax-Exempt Organization Executive Compensation Tax

Qualified Equity Grants Taxation

Excise Tax On Expatriated Corporate Stock Compensation

Selected International Provisions

Foreign-Source Dividends Deduction

Transfers with Specified 10% Owned Foreign Corporations

Deemed Repatriation of Deferred Foreign Income

Domestic Taxable Income Offset Election

Foreign-Derived Intangible Income Deduction

Indirect Foreign Tax Credits Repealed

Source Of Income From Sales Of Inventory Modified

Passive Foreign Investment Insurance Exception

Fair Market Value Of Interest Expense Apportionment

Foreign Person Sale of U.S. Partnership Interest

Exempt Organizations

Unrelated Business Income Tax (“UBIT”)

UBIT Separately Computed

Excise Taxes

Private College And University Investment Income

Glossary