Following our recent article in Isdaner Insights entitled “Last Minute Year-End Moves: Keep Tax Reform Bill in Mind” going to press, the Senate made some last minute modifications to the bill. Here are some of latest updates that may affect you.
- Low Income Housing Credit – This housing credit would be preserved.
- Alternative Minimum Tax – The Senate reinstates the corporate and individual alternative minimum tax; however, it increases the AMT exemption amounts for individuals: $109,400 for married taxpayers filing jointly or for surviving spouses, $70,300 for single taxpayers, and $54,700 for married taxpayers filing separately.
- Medical Expense Deduction – The Senate bill reduces the medical expense deduction floor from 10% to 7.5% of AGI and eliminates the minimum tax preference.
Of course, the tax bill will not be finalized until the Senate and House reconcile the differences in their bills. We will continue to give you the most up-to-date information on this legislation. Be sure to meet with your tax advisor before year-end for tax planning strategies that may benefit your unique situation.