A round-up of important highlights from the current tax law.
- Under current law, there are seven individual tax brackets, with the top rate at 37%.
- The exemption for estate, gift, and generation-skipping transfer taxes is $11.58 million for individuals or $23.16 million for married couples.
- The standard deduction is $12,400 for individuals and $24,800 for married couples
In December 2017, President Trump signed into law the highly anticipated tax reform act. Like most tax laws, it is neither positive nor negative in and of itself; rather, its effects will vary according to taxpayers’ individual circumstances. Most of the law’s provisions became effective on January 1, 2018, with numerous provisions expiring after 2025. The tax act is quite comprehensive and includes both personal and corporate tax changes. The following summary focuses on the key provisions applicable as they relate to high-net-worth individuals for 2020.
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