Tax Cuts & Jobs Act – Final Vote Imminent


As of right now, we are waiting for what is being advertised as nearly definite passage of the Tax Cuts & Jobs Act (votes are planned for Tuesday, December 19, and Wednesday, December 20), which will present taxpayers with a dramatically changed federal income tax landscape.

 The significant scope of these changes – most of which are effective as of 2018 – cannot be fully conveyed in a brief summary, but here is a quick, simplified listing of some – but certainly not all – of the major provisions.

Individuals will see a significantly changed landscape.  The changes will include a lower set of tax brackets, but changes to available deductions are also being made.  Some of the items to watch include:

  • Individual tax rates are going down in almost every bracket, with the top bracket going to 37%.
  • Individuals’ standard deductions nearly double; personal exemptions go away.
  • Mortgage interest debt limit (new purchases) goes down to $750,000.  Interest on home equity debt is no longer deductible.
  • State and local income/sales tax and property tax deductions are limited: combined $10,000.
  • 2% itemized deductions are being repealed.
  • Child tax credit is increasing to $2,000 - partially refundable.
  • Roth IRA contributions will not be able to be recharacterized as traditional.
  • The estate exemption is being doubled.

Businesses are also seeing the most significant tax treatment changes in over 30 years.  The longstanding wisdom that helped determine how businesses should be structured and should operate, both domestically and internationally, will change.  Some of the major changes include:

  • The corporate tax rate will be reduced and set at 21%.
  • Corporate Alternative Minimum Tax is repealed.
  • A 20% pass-through income deduction is created (to which caps and exclusions apply).
  • Interest expense deduction limits are put in place, with an exemption for small businesses.
  • Bonus depreciation is increased to 100% for qualifying purchases, and the original use requirement is repealed.  Section 179 expensing is significantly expanded, also.  Depreciation limits for vehicles raised.
  • The Domestic Production Activities Deduction (Section 199) is repealed.
  • Net operating loss carryover rules are significantly changed.

The breadth of these changes cannot be overstated, and the opportunity for proactive planning is always now, even as we await final voting and probable passage into law one of the most sweeping tax law changes in history.

Michael A. Carraway, Jr., is a member with GranthamPoole PLLC and a recognized leader in the field of partnership and corporate taxation, having worked with many clients on entity and transaction structuring matters.  He has also written, taught, and spoken on many topics in the area over the years and has served as a technical subject matter expert in several practices.  Please contact Mike at,, or 601-499-2400. CPA License # R2705

***The above does not represent tax advice.  Each situation is fact-dependent, and you should seek the advice of a competent advisor. GranthamPoole PLLC is a leading provider of tax, accounting, advisory and strategic services, partnering with clients across a broad spectrum of industries and sizes.

QuickBooks Certified ProAdvisor - QuickBooks Online Certification

Jackson Metro:

1062 Highland Colony Parkway
Suite 201 Ridgeland, MS 39157
Phone: 601-499-2400
Fax: 601-499-2401


1200 Jefferson Avenue, Suite 206
Oxford, MS 38655
Phone: 662-234-8130
Fax: 662-234-8892



IRS Shares Resources for Small Business Owners

Last week, the IRS highlighted resources for small business owners and the self-employed in honor of National Small Business Week. A few of the sh.. Read More


Tax Planning Opportunities – Renovations of Commercial Real Estate

In our earlier installment about How Tax Reform Affects Owners of Commercial Real Estate ( Read More


Alimony and the New Tax Act

The Tax Cuts and Jobs Act (the Act) ushered in significant tax reforms for both individuals and businesses with its passage last December. Most o.. Read More


Regulations Soon Issued for Carried Interest Limitations

The IRS announced it will be releasing regulations clarifying limitations around carried interests in S corporations in light of the new tax law. .. Read More


Interest on Home Equity Loans

The IRS recently advised taxpayers that in many cases, the interest paid on their home equity loans is still deductible under the new tax law. For.. Read More


529 Plans After Tax Reform – Better Than Before

Qualified tuition plans, also known as “529 plans” in reference to the applicable Internal Revenue Code Section, have been around for .. Read More


GranthamPoole PLLC Tax Reform Seminar

Listen in as our experts discuss some of the important changes in the tax code at our recent Tax Reform Seminar. The seminar covers changes such as in.. Read More


Effect of the Tax Cuts and Jobs Act on Valuations

The wide-reaching provisions of the Tax Cuts and Jobs Act (TCJA) will significantly affect values of businesses and assets. Small business owners.. Read More


Tax Reform Limits State and Local Tax Deduction

One of the areas affected by the Tax Cuts and Jobs Act (TCJA) is individual itemized deductions. This article will address one specific itemized .. Read More


Estate Planning Considerations as a Result of Tax Reform

The Tax Cuts and Jobs Act of 2017 (TCJA) reduces individual and corporate income tax rates, removes a multitude of credits and deductions, enhance.. Read More

View All News...

Want us to stay in touch?

* Required
Captcha Image

Copyright © 2014-2017 GranthamPoole PLLC
MS Firm Permit Number F0338