This Issues and Insights provides a summary of the new tax act and round-up of important highlights. There are still seven individual tax brackets, but the top rate was lowered from 39.6% to 37%.As expected, the tax act more than doubled the prior estate, gift, and generation-skipping transfer tax exemption, from $5,490,000 for individuals, or $10,980,000 for married couples, to approximately $11,400,000 for individuals or $22,800,000 for married couples (for 2019).
Three themes to help maximize your wealth planning potential.Estate tax planning: Take advantage of the higher estate, gift, and generation-skipping transfer (GST) tax exemption—which was nearly doubled under the new tax law.Income tax planning: Take advantage of other state jurisdictions to reduce or mitigate your current (or future) state and local income taxation.Charitable planning: Take advantage of the “last deduction standing” for charitable planning.
What does the passage of the Tax Cuts and Jobs Act mean for high-net-worth taxpayers?These charts review the Tax Cuts and Jobs Act (the Act) as passed by the U.S. Congress December 20, 2017 and signed by President Trump. Comparing the Act to current law, the charts focus on tax reform proposals most relevant to high income and high-net-worth taxpayers and businesses.