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Senior Spectrum Newspaper
February 2018
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Senior Spectrum Publications

Congress Passes New Tax Law
by Gerald M. Dorn, J.D., EPLS, AEP
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Gerald Dorn
Gerald Dorn

A few weeks ago, the Senate passed the new tax law, (which had been called the “Tax Cuts and Jobs Act” and due to Senate parliamentarian objections is now ‘An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018”) and then the House of Representatives passed it in its final form. The President signed the legislation on the last business day before the Holidays. The changes are generally effective January 1, 2018. The provisions relating to individual taxpayers, including those relating to estate, gift, and generation-skipping taxes all sunset after December 31, 2025, with the law reverting to prior law.

Here are the significant changes of interest to estate planning attorneys:

Estate & Gift Tax-related provisions:
Individual Income Tax Provisions:

The number of brackets remains the same, but some rates are lowering.

The new brackets are:

Corporate Taxes:
Tax Planning

As a result of the tax law changes for 2018, most taxpayers will no longer be able to itemize deductions. This means that very few taxpayers will be able to receive any tax benefit for charitable deductions.

This increases the desirability for taxpayers to take advantage of the “charitable IRA rollover” which became permanent a couple years ago. Those over age 70½ may give up to $100,000 of their IRA each year directly to a charity. Those who choose to do so do not need to take the amount into income.

The law firm of Anderson, Dorn & Rader, Ltd. is devoted exclusively to estate planning. Please contact us at (775) 823- WILL (9455), or visit us online at www.wealth-counselors. com.