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Tax Reform Watch
Highlights of the Tax Cuts and Jobs Act

Click here to download a pdf of these highlights


Medical expense deduction – 7.5% for 2018; 10% for 2019 and afterwards

SALT (State and Local Tax) maximum - $10,000 for all

Mortgage interest deduction - $750,000 mortgage debt limit for interest; home equity
interest discarded

Casualty loss – only federally declared disaster area

Charitable contributions – 60% of AGI; mandatory Contemporary Written
Acknowledgement (CWA) from the charity for contributions of $250 or more


Miscellaneous itemized deductions – no longer deductible; Lost deductions:

Employee business expenses
Investment expenses
Tax return preparation fees


Qualified business income deduction – 20% of pass-through income with limits

Child Tax Credit – increased amount; children must have SSNs

Other Dependents Credit – new $500 credit for qualifying relative

Moving expenses – only for military

Kiddie Tax – taxed at trust rates instead of parent's rate

Alternative Minimum Tax – higher threshold

Affordable Care Act – individual responsibility payment repealed in 2019 forward


Depreciation – 100% bonus and higher Section 179 limits

Business interest – limited unless revenues less than $25 million

UNICAP – exemption if revenues less than $25 million; cash method; need to file Form 3115 to elect a Change in Accounting Method

Net Operating Loss – no carryback; maximum of 80% of taxable income

Meals & Entertainment – no more entertainment expenses; meals 50% deductible

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