One of the most popular current topics being discussed on the news is the updated tax plan. While it would be too lengthy to describe all of the changes at once, Andrew Kabatchnick, CPA, summarizes some of the more important changes and how they will impact the taxpayer. As Andrew mentions in the video, the proposed tax plan will decrease the corporate tax rate by about 15% with the hopes that corporations will keep/move more of their cash state side instead of taking advantage of off shore tax havens.
Besides affecting corporations, the new tax plan will also affect the average tax payer. The proposed plan will change the federal income tax brackets and will decrease the amount one can deduct for mortgage. Currently, homeowners can claim a deduction on interest paid on mortgages valued up to $1,000,000, however the new tax plan will change this amount to $500,000.
The plan will also change the estate tax: under the current rules, a taxpayer can pass up to $5.49 million to heirs tax-free, but this will increase to $11 million, something that will most likely only benefit the country’s wealthiest families.
Be sure to watch Andrew’s video for all of the details and listen to how the changes could impact you. If you have any tax related questions, Andrew can be reached by email at AKabatchnick@gmail.com, or by his cell 973.879.9111. Visit his website andrew-cpa.com.