AccountingBookkeeping for Trump's Tax Plan in Mountain Home / Treasure Valley, ID

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 Mountain Home / Treasure Valley, Idaho. 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 Mountain Home / Treasure Valley, ID? 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  Mountain Home / Treasure Valley

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 Mountain Home / Treasure Valley, 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 - Mountain Home for a free tax planning consultation in Mountain Home / Treasure Valley and learn how to best approach your business and/or personal taxes in 2018!

Call 208-254-7788 today!


We live in OK. My husband works out of state and we just happened to stumble across Paramount and Christina. We were in a bind. Out of state from which she is located (Christina Weddle) and she took us on. Our taxes were very complicated and she really went out of her way to get it done for us. Highly recommend!!! She ...
— Taylor Hajj, Posted August 20th 2022 on google
Christina is absolutely amazing!! We are definitely procrastinators and have a weird and complex situation. Christina did a wonderful job and was fabulous to work with. She's knowledgeable and understands the complexities of many situations.
— Elena Tullman, Posted April 17th 2022 on google
Christina is AMAZING, I thought I was going to owe a chunk this year, She did a deep dive and I’m getting money back rather than owe anything! We definitely found our new tax professional.
— jordyn schalk, Posted April 8th 2022 on google
Meticulous and professional….Christina earned a client for many years to come!
— Dill3683, Posted March 29th 2022 on google
Was able to get me into her office the same day, and handled all my questions and concerns and got all our taxes filed super fast! She was so amazing and we are excited to work with her again next year!
— Sheena Silbaugh, Posted March 15th 2022 on google
AMAZING! So happy to have someone local in my corner that can help my business thrive. Thank you so much Christina!!!
— Aaron Bissell, Posted March 8th 2022 on google
My experience with Christina was excellent! She was quick, professional, and took all the time I needed to answer my questions. I was able to meet with her over Zoom and it was a dream! No need to leave my office for yet another appointment. It was exactly what I have been looking for in a tax professional. I highly re...
— Andrea Bennett, Posted March 8th 2022 on google
Christina was amazing ! So thorough, so caring. I am so pleased !! I will be back next year for sure. Highly highly recommend
— Annette Parrett, Posted March 5th 2022 on google
Christina is absolutely incredible. She saved me! I had hundreds of questions and concerns and she helped answer them all. She is thoughtful, responsive and extremely knowledgeable. If you are in need of someone to do you taxes the right way, and educate you along the way, I highly recommend her. Thank you SO much for ...
— Shalisse Ewing, Posted February 25th 2022 on google
Christina was fantastic to work with and did a great job of answering our questions and resolving our tax issues with the best possible refund. I would absolutely recommend her to anyone who wants a hassle-free tax experience.
— Glen Gabel, Posted February 19th 2022 on google
Cristina is amazing! I am so grateful for her this tax season. Filing my taxes has always been a task that I have spent WAY too much time on and has stressed me out year after year. This year I decided to have someone who knows this stuff way better than I do help me out, and it was so easy. Christina is kind, professi...
— Jacqueline Garreau, Posted February 19th 2022 on google
Very nice, attention to detail and helpfulness very appreciated
— Jonathan Fabre, Posted February 12th 2022 on google
Christina's expertise and knowledge are second to none. She does an excellent job with explaining everything and makes doing your taxes a breeze. Thank you Christina, and we'll see you next year.
— Rob Lou, Posted February 5th 2022 on google
Christina is so professional, personable and really cares! Look no further for your Tax & Accounting needs!
— Gabe May, Posted January 21st 2022 on google
Christina is very knowledgeable and assisted with all my questions. Her professionalism and attention to detail are second to none. You won’t be disappointed.
— Amy Weidman, Posted November 29th 2021 on google
Christina is very concerned about her clients and has the clients best interest at heart she’s very professional and is excellent at what she does I really appreciate just how professional she is I would recommend her very highly she has an excellent reputation and is an EA who is a tax expert Who can serve all your ...
— Robert Ambrose, Posted November 5th 2021 on google
Christina is absolutely amazing and professional. Her straight forward, but yet funny demeanor is refreshing. I highly recommend.
— Duncan Richardson, Posted November 4th 2021 on google
Christina is a wonderful communicator, thorough and professional!
— natasha Smith, Posted November 3rd 2021 on google
The attention to detail and personalized service is spot on. A pleasure to work with!
— halibut chaser, Posted November 3rd 2021 on google
Christina is fantastic!
— A Wirsh, Posted November 3rd 2021 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 - Mountain Home, 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 Mountain Home / Treasure Valley. So when you ask yourself, "Where can I find accountingbookkeeping services near me?"... think no further than Paramount Tax & Accounting - Mountain Home!

Free Consultation 208-254-7788

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 - Mountain Home a call or visit our tax and accountingbookkeeping firm in Mountain Home / Treasure Valley for a free consultation.

Individual Tax Preparation Business Tax Preparation

Why Choose Paramount Tax & Accounting - Mountain Home?

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

Bookkeeping Services in Mountain Home / Treasure Valley

Bookkeeping Services in Bountiful 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