CHANGES TO TAX LAW UNDER TRUMP ADMINISTRATION

President-elect Donald Trump campaigned on the promise of tax reform. Now that he’s been elected, what changes can we expect to see when he takes office in 2017? Based on his campaign proposals, here’s what to look for:

• Trump has promised tax cuts of up to 33% and the elimination of several tax brackets. He has proposed going from 7 tax brackets down to 3.
• Trump has proposed eliminating the estate tax, or “death tax” as it is commonly known.
• Trump wants to repeal the 3.8% net investment income tax imposed on passive income, including capital gains.
• Trump said during the campaign that he would increase the annual cap on Section 179 expensing from $500,000 to $1 million, in order to help small businesses.
• Trump has proposed an increase in the standard deduction from $6,350 to $15,000 for single individuals, and $12,700 to $30,000 for married couples filing jointly.
• Trump also said on the campaign trail that he would implement a cap on the amount of itemized deductions that could be claimed to $100,000 for single filers and $200,000 for married couples filing jointly. In addition, he would eliminate all personal exemptions, as well as the head-of-household filing status.

You can read a detailed analysis of Trump’s expected tax law changes in the full briefing here.