Details of HR 1 as passed the House and as amended by the Senate
In red below are the bill details as discharged from the Senate House Conference.
State and Local Tax Deduction –
House and Senate repeals the income and sales tax deductions and caps property tax deductions at $10,000.
Individuals can deduct no more than $10,000 worth of the deductions, which could include a combination of property taxes and either sales or income taxes.
501(c) 3 non-profits –
No change to church’s ability to support a political candidate.
Medical Expense Deduction –
Qualified medical expenses that exceed 7.5 % of adjusted gross income are deductible for 2017 and 2018.
Standard Deduction –
For individuals and couples – Senate and House $12,000 and $24,000.
$12,000 standard deduction for single taxpayers and $24,000 for married couples, filing jointly. Personal exemptions repealed.
Unchanged in Conference.
Mortgage Interest Deductions –
For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the current mortgage interest deduction. For homeowners with new mortgages on a first or second home, the home mortgage interest deduction will be available up to $750,000..
Corporate Tax Rates –
Senate immediate rate of 20%. House 20% starting in 2019.
Corporate tax rate at 21% starting in 2018.
Individual Rates –
10 percent: $0 to $9,525
12 percent: $9,525 to $38,700
22 percent: $38,700 to $82,500
24 percent: $82,500 to $157,500
32 percent: $157,500 to $200,000
35 percent: $200,000 to $500,000
37 percent: $500,000 and above
10 percent: $0 to $19,050
12 percent: $19,050 to $77,400
22 percent: $77,400 to $165,000
24 percent: $165,000 to $315,000
32 percent: $315,000 to $400,000
35 percent: $400,000 to $600,000
37 percent: $600,000 and above
Alternative Minimum Tax –
Senate Repeals. House keeps.
For corporations; repealed in Conference.
for individuals, $70,300 for singles and $109,400 for joint filers. Increase the phase-out threshold to $500,000 for singles and $1 million for joint filers. The higher limits would expire on Jan. 1, 2026.
Improves savings vehicles for education by allowing families to use 529 accounts to save for elementary, secondary and higher education.
Teachers allowed to claim out-of-pocket- spending up to $250.00.
for graduate students by continuing to exempt the value of reduced tuition from taxes.
Interest on student loans continues to be deductible.
Senate repeals. House no change.
Repealed in Conference
Estate Tax –
Senate and House doubles the deduction, Senate repeals after 2024.
Double the thresholds. The higher thresholds would sunset in 2026. $11 million for singles, $22 million for couples.
Real Estate Investment –
Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
20% deduction for developers
Pass Through Taxes –
Offers a first-ever 20% tax deduction that applies to the first $315,000 of joint income earned by all businesses organized as S corporations, partnerships, LLCs, and sole proprietorships. For Main Street job creators with income above this level, the bill generally provides a deduction for up to 20% on business profits – reducing their effective marginal tax rate to no more than 29.6%.
Business expensing –
Senate and House allows five years of new equipment expensing.
Fully and immediately deduct the cost of certain equipment purchased after Sept. 27, 2017 and before Jan. 1, 2023. After that, the percentage of cost that could be immediately deducted would gradually phase down.
Preserves the Research & Development Tax Credit
International taxes –
Business. Senate and House. Would only tax domestic profits and includes some excise taxes.
Repatriation Taxes –
House. 14% on liquid assets, 7% on non liquid assets. House. 14.5% on liquid. 7.49% non liquid.
U.S. companies’ overseas income held as cash would be subject to a 15.5 percent rate, while non-cash holdings would face an 8 percent rate.
Child Tax Credit –
House. $1600 credit. $300 for dependents. Senate. $2000 credit and $500 for dependents.
$2,000 for each child under 18 through 2024. Raise the phase-out amount to $500,000, and cap the refundable portion at $1,400 in 2018.
The tax credit is fully refundable up to $1,400 and begins to phase-out for families making over $400,000. Parents must provide a child’s valid Social Security Number in order to receive this credit.
But there’s more –
The House bill expands college savings accounts to unborn include children..
No new taxes on aircraft owners for money spent on maintenance.
The measure reduces excise taxes on craft beers.
1.4 percent excise tax on incomes produced by university and other private endowments.
Interest deduction on various types of bonds is repealed..
The Arctic National Wildlife Refuge would be opened to oil and gas drilling.
The Senate repeals a $3,000 deduction for living expenses that can be taken by members of Congress.
Moving costs repealed in 2018, Exceptions for members of the military.
Alimony no longer deductible. The person receiving the payments would pay no tax on that income effective 2019.
House fire, flood, burglary or other such losses are deductible for losses more than $100 and collectively more than10 percent of your adjustable gross income BUT only when th president declares a disaster.
Of you convert to a Roth,you cannot convert back..
You can deduct fees you pay to an investment adviser and similar expenses related to money management are deductible but only if they add up to at least 2 percent of your adjusted gross income.
Your money grows free of any capital gains taxes and you can withdraw it tax-free to pay for higher education expenses
You will also be able to withdraw up to $10,000 each year, per child, to pay for private or religious school and receive the same tax benefits. Families participating in home schooling can also take out up to $10,000 a year to use for educational expenses. Also, families can roll 529 funds over to ABLE accounts, which offer tax advantages for people with disabilities.
You can exclude up to $20 a month from your income for expenses related to regular bicycle commuting, as long as you are not receiving other pretax commuting benefits from your employer.
The bill would change the measure of inflation to what is known as the chained C.P.I., which generally rises more slowly than what is used now. The bill clarifies that people (including many professional gamblers) who also deduct wagering expenses, such as the cost of travel to and from a casino, must add those expenses to their total losses before comparing that sum to their total taxable winnings for the purpose of making the overall deduction calculation. This clarification does not apply to expenses that gamblers incur beyond 2025.
Discharged debt in the event of death or total and permanent disability will no longer be taxable. The provision expires after 2025.