Question
In: Accounting
Tax Law Changes? President Trump signed the "Tax Cuts and Jobs Act" into law on Dec....
Tax Law Changes?
President Trump signed the "Tax Cuts and Jobs Act" into law on Dec. 22, 2017. Many of the changes will affect individual taxpayers in 2018. Review the new tax law and the changes that pertain to individual taxpayers.
Pick one provision that was passed that you feel strongest about supporting. Explain why it's supported.
Solutions
Expert Solution
The new tax law will reduce the marginal tax rate on individual income labor and investment. Also, there is and estimation of increase in the GDP.
Following are the changes pertains to the individual:
1. Lowermost individual income tax rate that includes the top marginal rate is reduced from 39.6 to 37 per cent.
2. The new tax law increases the standard deduction for the individuals to $12,000.
3. By lowering the penalty amount to $0, it effectively repeals the individual mandate penalty.
The new tax code is projected to improve the United states's current ranking from 30th to 25th among the 35 Organisation for Economic Co-operation and Development (OECD) .
Full expensing provision is allowed to the short life investment under the new tax law. It allows businesses to deduct the full cost of most short-lived asset such as machinery and equipment though not longer lived asset like structures.
ekkarill92 answered 2 years agoRelated Solutions
Tax savings are being passed down President Trump signed the Tax Cuts and Jobs Acts into...
Tax savings are being passed down
President Trump signed the Tax Cuts and Jobs Acts into law on
Dec. 22, 2017, reducing personal income taxes for most families for
the next 10 years. Corporations, however, received much bigger and
more permanent tax cuts with the new law reducing the corporate tax
rate from 35% to 21% and reducing the tax on repatriated cash to
15.5%. The Congressional Budget Office estimates businesses will
save about $320 billion in taxes over the...
What are the positives and negatives of the "Tax Cuts and Jobs Act"?
What are the positives and negatives of the "Tax Cuts and Jobs
Act"?
The Tax Cuts and Jobs Act of 2017 is a major overhaul of the tax codes...
The Tax Cuts and Jobs Act of 2017 is a major overhaul of the
tax codes in nearly three decades: it has generated a lot of
debates on its potential impacts on economic growth, budget and
sustainability, and equality and fairness etc. For our purpose,
focus your discussion on the corporate side:
What would be possible impacts of some of the specific
provisions on the corporate FCF, WACC, and Valuation?
What would be the possible impacts of some of the...
The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs...
The Tax Cut and Jobs
Act, 2017
The changes made by
the Tax Cut and Jobs Act, 2017 to the tax provisions have changed
tax rate for 2018 and people are getting a first hand experience of
what it means to them. Go over the Act and address the questions
below:
1. What are the major
changes made to the tax provisions by the Act?
2. What impact is it
likely to have on our GDP and government’s budget?
The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs...
The Tax Cut and Jobs
Act, 2017
The changes made by
the Tax Cut and Jobs Act, 2017 to the tax provisions have changed
tax rate for 2018 and people are getting a first hand experience of
what it means to them. Go over the Act and address the questions
below in full paragraphs:
Does everyone benefit
from the changes in tax provisions or does it favor one group over
others?
What changes do you
agree and disagree with?
The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs...
The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut
and Jobs Act, 2017 to the tax provisions have changed tax rate for
2018 and people are getting a first hand experience of what it
means to them. Go over the Act and address the questions below in
full paragraphs: If you had the power to revise the Act, what
changes would you make? How have the changes in taxes affected you
personally? Many articles have...
You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an...
You will need to reference the Tax Cuts and Jobs Act of 2017
(Links to an external site.) to solve the questions in this
assignment. The questions below also rely on the following
assumptions:
You file your taxes as a single filer.
Your only taxable source of income is wage income.
In 2017 you earned $100,000 of gross wage income.
In 2017 you claimed one personal exemption.
In 2017 you claimed itemized deductions of $10,000.
Calculate the amount of federal...
You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an...
You will need to reference the Tax Cuts and Jobs Act of 2017
(Links
to an external site.) to solve the questions in this
assignment. The questions below also rely on the following
assumptions:
You file your taxes as a single filer.
Your only taxable source of income is wage income.
In 2017 you earned $100,000 of gross wage income.
In 2017 you claimed one personal exemption.
In 2017 you claimed itemized deductions of $10,000.
A) Calculate the amount of...
NOTE: All questions will be based on Tax Cuts & Jobs Act (TCJA) and tax returns...
NOTE: All questions will be based on Tax Cuts &
Jobs Act (TCJA) and tax returns prepared after
2017
17) All of the following MACRS assets useful life categories are
correct, except:
A) Trucks have a 5-year useful life under MACRS.
B) Computers have a 3-year useful life under MACRS.
C) Desks have a 7-year useful life under MACRS.
D) Residential rental real estate buildings have a 27.5-year
useful life under MACRS.
E) Non-residential real estate buildings have a 39-year...
1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate to a...
1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income
tax rate to a 21% flat rate.
True
False
2. The Tax Cuts and Jobs Act of 2017 eliminated the child tax
credit.
True
False
3. A taxpayer can deduct pass-through losses on his Form 1040.
However, he must pass all these limitations in order to deduct the
losses, except the
A.basis limitation.
B.the limitation on the number of children he has.
C .at-risk limitation.
D.passive loss limitation.
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