​Five Important Tax Changes for 2018

There is a new tax structure in effect for 2018. This change will impact almost all taxpayers. Here are five important changes which will impact individuals. 

1. Deductions for state and local, income, sales, and property taxes are capped at $10,000.
2. Deductions for home equity interest loans have been repealed.
3. The federal estate, gift, and generation-skipping transfer tax exemption is $11,200,000 for individuals and $22,400,000 for married couples - from $5,490,000 and $10,980,000, respectively, in 2017.
4. Personal Exemptions are repealed – Standard Deductions are increased as follows (which will likely reduce the number of people who itemize deductions):  Individual- Current $6,350  2018 $12,000 Married filing Jointly-Current $12,700  2018 $24,000
5. New Tax Brackets

• Individual
  • 10%: $0 to $9,525
  • 12%: $9,526 to $38,700
  • 22%: $38,701 to $82,500
  • 24%: $82,501 to $157,500
  • 32%: $157,501 to $200,000
  • 35%: $200,001 to $500,000
  • 37%: over $500,001
• Married joint filers
  • 10%: $0 to $19,050
  • 12%: $19,051 to $77,400
  • 22%: $77,401 to $165,000
  • 24%: $165,001 to $315,000
  • 32%: $315,001 to $400,000
  • 35%: $400,001 to $600,000
  • 37%: Over $600,000

This change will impact most individuals in the State of Ohio. Many estate plans focused on estate tax avoidance created prior to 2018 will need to be updated to address potential changes based on these updates. In addition, there are implications for business owners and succession plans which likely need to be reviewed.

​For more information on Estate Planning, Estate Administration, Trust creation, contact Elliott Stapleton. 

---