Donald Trump’s election is expected to bring changes to the tax laws. Here are some key campaign proposals that we are following:
- Individual ordinary income tax rates would be reduced to a three bracket structure of 12, 25 and 33%.
- The 3.8% net investment income tax would be repealed.
- The estate and gift tax would be repealed.
- The alternative minimum tax would be repealed.
- The corporate income tax rate would be reduced to 15%. (This could have a significant impact on a company’s deferred tax position).
- The annual cap on Section 179 expensing would be increased to $1 million.
- Pass-through entities could elect to be taxed at a flat rate of 15% on income retained in the business.
- A deemed repatriation of corporate profits held offshore at a “one-time” reduced tax rate would be implemented.
- In lieu of deducting interest expense, manufacturing firms would be able to immediately deduct all new investments in the business.
Interested in staying up to date on the latest tax legislation? Click here to sign up to receive Warren Averett’s Tax Alerts. In addition, read the latest Birmingham Business Journal feature with Tax Member William Dow discussing the Presidential Transition.