The following is in no way a tax advice, I am not a CPA, but at a program given by RINA’s CPA this morning, here are the possible tax changes with the Trump Presidency:
- Tax cuts $4.4 trillion to $5.9 trillion during the next 10 years.
- Instead of current 7 tax brackets with the highest 39.6%, only 3 tax brackets: 12%, 25%, and 33%.
- Standard deduction for single person raised from $15 K to $30K.
- The Alternative Minimum Tax will be eliminated.
- A cap on itemized deductions at $100 K (for single person) and $200 K (for married). Might not limit on charitable deductions, but not determined yet.
- Corporate tax rate dropped from 35% to 15%.
- Allow repatriation of deferred foreign profits at a rate of 10%.
- Eliminate federal, state and gift tax – step-up allowed for estates under $10 million.