Bigger Deductions for Charitable Gifts of Cash
The Tax Cuts and Jobs Act of 2017 raises the ceiling on gifts of cash from 50% of AGI to 60% of AGI, making big-ticket gifts even more valuable.
Big New Deduction for Proprietorship Income
Although sole proprietorships offer few specific tax breaks, the Tax Cuts and Jobs Act of 2017 makes them potentially more valuable by characterizing proprietorship income as "qualified business income" -- and offering a deduction of up to 20% of that amount. However, careful planning may be required to take advantage of this opportunity, especially if it comes from "specified personal services" or your taxable income is over $157,500 (singles) or $315,000 (joint filers).
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New Opportunities for Family Income-Shifting
The Tax Cuts and Jobs Act of 2017 nearly doubles the standard deduction for single taxpayers to $12,000. This creates even more opportunity to shift tax-free earned income to your children by hiring them to work for your business.
Strict New Rule for Roth IRA Conversions
Under the old rules, you could "undo" a Roth IRA conversion if you discovered you had created more taxable income than you expected, or the value of your account dropped after the conversion. The Tax Cuts and Jobs Act of 2017 eliminates this opportunity, which makes it even more important to plan carefully before converting.