AccountingBookkeeping for Trump's Tax Plan in Draper, UT

How Does President Trump's Tax Plan Affect You?

On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act. This act is a federal law that will affect all personal and business taxes in all states and cities such as Draper, Utah. It cuts the corporate tax rate from 35 percent to 21 percent beginning in 2018. The top individual tax rate will drop to 37 percent. It cuts income tax rates, doubles the standard deduction, and eliminates personal exemptions. The corporate cuts are permanent, while the individual changes expire at the end of 2025.

Wondering how this affects you personally or your business in Draper, UT? Here's a summary of how the Act changes income taxes, deductions for child and elder care, and business taxes.




Income Tax Rate

The Act keeps the seven income tax brackets but lowers tax rates. Employees will see changes reflected in their withholding in February 2018 paychecks. These rates revert to the 2017 rates in 2026.

The Act creates the following chart. The income levels will rise each year with inflation. But they will rise more slowly than in the past because the Act uses the chained consumer price index. Over time, that will move more people into higher tax brackets.


Income Tax RateIncome Levels for Those Filing As:
20172018-2025 SingleMarried-Joint
10%10%$0-$9,525$0-$19,050
15%12%$9,525-$38,700$19,050-$77,400
25%22%$38,700-$82,500 $77,400-$165,000
28%24%$82,500-$157,500$165,000-$315,000
33%32%$157,500-$200,000 $315,000-$400,000 
33%-35% 35%$200,000-$500,000$400,000-$600,000
39.6%37%$500,000+$600,000+



Deductions

It doubles the standard deduction. A single filer's deduction increases from $6,350 to $12,000. The deduction for Married and Joint Filers increases from $12,700 to $24,000.

It reverts back to the current level in 2026. As a result, 94 percent of taxpayers will take the standard deduction. The National Association of Home Builders and the National Association of Realtors opposed this. As more taxpayers take a standard deduction, fewer would take advantage of the mortgage interest deduction.

The Act eliminates most itemized deductions. That includes moving expenses, except for members of the military.

Those paying alimony can no longer deduct it, while those receiving it can. This change begins in 2019 for divorces signed in 2018.

It keeps deductions for charitable contributions, retirement savings, and student loan interest.

It limits the deduction on mortgage interest to the first $750,000 of the loan. Interest on home equity lines of credit can no longer be deducted. Current mortgage-holders aren't affected.

Taxpayers can deduct up to $10,000 in state and local taxes. They must choose between property taxes and income or sales taxes.

The Act expands the deduction for medical expenses for 2017 and 2018. It allows taxpayers to deduct medical expenses that are 7.5 percent or more of income. Before the bill, the cutoff was 10 percent for those born after 1952. Seniors already had the 7.5 percent cutoff.  At least 8.8 million people used the deduction in 2015.

Health Insurance Mandate Tax

The Act repeals the Obamacare tax requiring individuals to have insurance in 2019.

Personal Exemptions

It eliminates personal exemptions. Before the Act, taxpayers subtracted $4,150 from income for each person claimed. As a result, some families with many children will pay higher taxes despite the Act's increased standard deductions. 

The Act doubles the estate tax exemption to $11.2 million for singles and $22.4 million for couples. That helps the top 1 percent of the population who pay it. These top 4,918 tax returns contribute $17 billion in taxes. The exemption reverts to pre-Act levels in 2026.

It keeps the Alternative Minimum Tax. It increases the exemption from $54,300 to $70,300 for singles and from $84,500 to $109,400 for joint. The exemptions phase out at $500,000 for singles and $1 million for joint. The exemption reverts to pre-Act levels in 2026.  

Child and Elder Care 

The Act increases the Child Tax Credit from $1,000 to $2,000. Even parents who don't earn enough to pay taxes can claim the credit up to $1,400. It increases the income level from $110,000 to $400,000 for married tax filers.  

It allows parents to use 529 savings plans for tuition at private and religious K-12 schools. They can also use the funds for expenses for home-schooled students.

It allows a $500 credit for each non-child dependent. The credit helps families caring for elderly parents. 

Business Taxes

The Act lowers the maximum corporate tax rate from 35 percent to 21 percent, the lowest since 1939.

It raises the standard deduction to 20 percent for pass-through businesses. This deduction ends after 2025. Pass-through businesses include sole proprietorships, partnerships, limited liability companies, and S-corporations. They also include real estate companies, hedge funds, and private equity funds. The deductions phase out for service professionals once their income reaches $157,500 for singles and $315,000 for joint filers.

The Act limits corporations' ability to deduct interest expense to 30 percent of income. For the first four years, income is EBITDA, but reverts to earnings before interest and taxes thereafter. That makes it more expensive for financial firms to borrow. Companies would be less likely to issue bonds and buy back their stock. Stock prices could fall. But the limit generates revenue to pay for other tax breaks.

It allows businesses to deduct the cost of depreciable assets in one year instead of amortizing them over several years. It does not apply to structures. To qualify, the equipment must be purchased after September 27, 2017, and before January 1, 2023.

The Act requires stiffens the requirements on carried interest profits. Carried interest is taxed at 23.8 percent instead of the top 39.6 percent income rate. Firms must hold assets for a year to qualify for the lower rate. The Act extends that requirement to three years.

The Act eliminates the corporate AMT.  The corporate AMT had a 20 percent tax rate that kicked in if tax credits pushed a firm's effective tax rate below that level. Under the AMT, companies could not deduct research and development spending or investments in low-income neighborhood.

It advocates a change from the current "worldwide" tax system to a "territorial" system. Under the worldwide system, multinationals are taxed on foreign income earned. They don't pay the tax until they bring the profits home. As a result, many corporations leave it parked overseas. Under the territorial system, they aren't taxed on that foreign profit. They would be more likely to reinvest it in the United States. This will benefit pharmaceutical and high tech companies the most.

The Act allows companies to repatriate the $2.6 trillion they hold in foreign cash stockpiles. They pay a one-time tax rate of 15.5 percent on cash and 8 percent on equipment.

Oil Drilling

It allows oil drilling in the Arctic National Wildlife Refuge. 

Electric Vehicles and Wind Farms

It retains tax credits for electric vehicles and wind farms. 

Drug Research

It cuts the deduction for orphan drug research from 50 percent to 25 percent. Orphan drugs target rare diseases. 

Alcohol

The Act cuts taxes on beer, wine, and liquor.

No. 1 Trump Tax Plan Bookkeeping  Draper

Request Appointment Now!

President Trump's tax plan carries with it the most drastic change in our tax code in 30 years. As experienced Tax Professional's in Draper, we are responsible for precisely understanding and efficiently enacting any changes due to new tax laws that affect your personal and/or business tax filings. This is why it is critically important to have an experienced accountantbookkeeper in your corner when it comes to your upcoming 2018 taxes and beyond. It is our duty and pleasure to help individuals and businesses take every step to ensure the proper deductions, credits and strategies are exercised for your benefit. Please contact Paramount Tax & Accounting, CPAs - Draper for a free tax planning consultation in Draper and learn how to best approach your business and/or personal taxes in 2018!

Call 801-890-4777 today!


For reference, my name is Zach Deckard and I had Brian Baity assisting me with my taxes. I must say that he was very friendly and pleasant to work with! I truly feel like I got my maximum return for the first time. So much so, that I'm going to go re-file my previous year's taxes to see what was inevitably missed. Th...
— As Above, So Below, Posted May 1st 2022 on google
Thanks to Brenda William, for helping me and my family trade, I got my withdrawal (cash out) yesterday. You're the best trader I've ever experience myself. After many times of been defrauded of my funds, i finally get to cash out. She's legit, reliable and experience. I invested $500 to earn $5,800... Easier than I tho...
— Log into Facebook | Facebook, Posted April 30th 2022 on facebook
I have been using this group for years. They are very quick, know what they are doing and I've never been disappointed. Things have always turned out much better than I was anticipating at tax time since using them. I'm a customer for life. Dave and his group are outstanding. I highly recommend giving them a try.
— Uncle Rico, Posted April 29th 2022 on google
Please everyone YOU NEED TO STOP SENDING MONEY TO PEOPLE TO INVEST ON YOUR BEHALF I have lost about $14,000 in the past Months sending money to scammers ... YOU just NEED Account managers with many years of past experience who are doing well in their profession to teach, direct and guild you on how to get started .it's...
— Log into Facebook | Facebook, Posted April 27th 2022 on facebook
What a delightful experience it was working with Dave Southwick as we filed our taxes with him this year. I was impressed with the personable, yet professional and proficient way he got the job done . Dave’s expertise and knowledge with regards to accounting and tax laws quickly puts your mind at ease knowing you are...
— Susan Ahlman, Posted April 11th 2022 on google
We were introduced to David Southwick recently and he was able to share a new perspective on structuring our tax preparation. He also presented a rare opportunity to extend our tax savings through a private investment which further yielded high tax savings. Dave is responsive and was able to save us thousands this pa...
— Chad Cronquist, Posted April 11th 2022 on google
Dave Southwick did a great job! He is knowledgeable and easy to talk to. Thank you for taking such good care of us!
— Tara Hunsaker, Posted April 8th 2022 on google
This was my first year using Dave and I had a very good experience with him. He is always helpful and did a great job with our taxes. Definitely using him again!
— Darin Wilcox, Posted April 6th 2022 on google
Great service with excellent advice on how to plan for my taxes. I recommend them to everyone of my family and friends.
— Sr Tim, Posted April 6th 2022 on google
Paramount Tax is fantastic to work with. They’ve been our accountant for years and we tell everyone we know to go to them!
— J G, Posted April 6th 2022 on google
My taxes were much more complicated this year than they have been in the past. The accountant was extremely helpful in figuring everything out and took all the stress out filing my taxes. Will absolutely come back.
— Nate Challis, Posted April 3rd 2022 on google
Very professional and great price! I went in thinking I was going to pay because I had started a new LLC, worked full time, divorce, sold 2 houses, and got scammed out of 180k on a ponzi scheme. They actually got me a significant amount of $ back! I would recommend Elsa, Issac and the whole paramount team all day. Grea...
— Matt Myers, Posted April 2nd 2022 on google
Investing with MRS ELIZABETH BAYS was the very best decision I ever made in my life. I am now eating the fruit of my labour, I login into my account to make withdrawals weekly basis and she made up to $7,000 for me with the investment of $600. Please my fellow brothers and sisters invest your money into FOREX/BITCOIN a...
— Log into Facebook | Facebook, Posted April 2nd 2022 on facebook
Dave was super helpful in getting all the details of what I could deduct. Super!!
— Jilene Burger, Posted April 1st 2022 on google
I have gone to Paramount Tax & Accounting for my annual Taxes for 2 years. They were quick and efficient. Everyone was very nice. I would recommend them.
— Robyn Andreasen, Posted March 29th 2022 on google
I have been working with Dave Southwick and Paramount for several years now. They are amazing to work with. Very professional, timely and knowledgeable. There have been times where I have made last minute calls to get my taxes done and they are always willing to help me. Highly recommend them for any Tax related servi...
— Sreekanta Manjunath, Posted March 28th 2022 on google
I can Not say enough good things about Paramount tax specially to James Kim. My taxes have become very complicated recently and James was there for every step of the process to simplify it for me. I pushed James a few times and his support was beyond my expectations. He answered my questions plus providing help exactly...
— Amir Orojeni, Posted March 27th 2022 on google
I’ve been working with Dave and Paramount Tax for 4 years now. Great staff, quick and helpful during tax time, and responsive with tax questions and scenarios throughout the year. I send all my friends looking for tax help their way!
— Austin Nilsson, Posted March 25th 2022 on google
I have to say this has been the best experience I've ever had doing my taxes. Professionalism exceed my expectations. If I could give the higher then 10 🌟 I would. Only service I will be using moving forward!
— Jamal Guiler, Posted March 22nd 2022 on google
I have had such amazing care from Paramount. I feel like I am their only customer. This year was a rough tax year with my husband’s passing and they were gracious and so helpful to me with all the odd things I had going on in my finances. They took time to explain things to me, and make sure all my concerns were cov...
— Jen Whiting, Posted March 22nd 2022 on google

Image Description Free 3-Year Tax Review

We review 3 years back to find errors / missed deductions.

Reviews Contact Us

Paramount Experience

Many people do not know how a professional tax firm differs from a tax preparer. The main difference when working with a professional tax and accountingbookkeeping firm, such as Paramount Tax & Accounting, CPAs - Draper , is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from other finance professionals by stringent qualification and licensing requirements. Paramount has worked hard to create relationships to deliver the value that our clients expect. In fact, our goal is to be the No. 1 No. 1 Trump Tax Plan Bookkeeping firm in Draper. So when you ask yourself, "Where can I find accountingbookkeeping services near me?"... think no further than Paramount Tax & Accounting, CPAs - Draper !

Free Consultation 801-890-4777

Upgrade to Tax & AccountingBookkeeping Firm

Whether you are filing personal taxes or you own a business, if you are not already using a professional tax and accountingbookkeeping firm, you have most likely already missed out on major tax benefits, deductions and credits. This is because a professional tax and accountingbookkeeping firm utilizes licensed professionals such as CPAs, EAs and Attorneys, who can not only advise individuals on personal financial matters but who are qualified to advise businesses, financial institutions, nonprofit organizations and government agencies on a wide range of financial topics. Our strict standards ensure that we understand the complicated tax laws and how to implement strategies that return the most benefits to individuals and businesses. Give Paramount Tax & Accounting, CPAs - Draper a call or visit our tax and accountingbookkeeping firm in Draper for a free consultation.

Individual Tax Preparation Business Tax Preparation

Why Choose Paramount Tax & Accounting, CPAs - Draper ?


Through dedication to the three underlying principles of professionalism, responsiveness and quality, Paramount is committed to providing outstanding service to our clients.

cpa accounting franchise


Paramount Tax is now offering financial and tax franchises across the US!


Let us make our success into your success!

Franchise Information Call: 801-784-6677