Tax Deductions Impacted by New Tax Law
25th Jun 2018
Many tax deductions will disappear or be reduced in 2018 because of the new Tax Cuts and Jobs Act (TCJA), affecting high-income self employed and small business owners who have used these deductions in the past. As corporate tax rate drops to 21% and tax deductions such as alimony, mortgage interest, investment fees are eliminated, there are more limitations for clients who need a large tax deduction.
There is a silver lining though: Surprisingly, TCJA increased the value of Defined Benefit and Cash Balance plans for certain individuals.
We’ve summarized the major changes to the tax law in this informative infographic. If you’re high income self employed or a small business owner, a defined benefit or cash balance plan may work for you.