KPMG’s 2019 Personal Tax Planning Guide provides valuable information about the current tax laws and provides planning tips.
A major tax law (Public Law No. 115-97)—originally known as the Tax Cuts and Jobs Act—was enacted in December of 2017. The new law introduced significant changes to many areas of the U.S. tax system, including the taxation of individuals, businesses in all industries, multinational enterprises, and other areas.
While most of the new corporate provisions are permanent, many of the individual provisions (including a new deduction for some owners of passthrough entities) are scheduled to expire after 2025 and revert to their pre-enactment form.
To support year-end tax planning and help you plan for the year ahead, KPMG LLP (KPMG) presents the 2019 Personal Tax Planning Guide. Prepared by tax professionals from our Washington National Tax office, the guide provides valuable information about the new changes to the tax laws while providing corresponding planning tips.
In addition to chapters on individual income tax planning, planning for your business, and investment-related tax issues, the guide includes information for higher-income taxpayers concerning retirement planning, charitable giving, and estate and gift planning.
What's new for 2019
Among the key changes affecting individuals for tax years 2018 through 2025 are:
Lower individual income tax rates and revised brackets
An increased estate, gift, and generation-skipping transfer tax exclusion of $11.18 million per person for 2018
New limits on active net business losses
Simplified “kiddie tax”
A new 20% deduction for qualifying income of certain owners of passthrough businesses and sole proprietorships
Plus, new limits on itemized deductions, including:
A $10,000 cap on the deduction for state and local taxes in many cases
A lower limit on how much debt can be treated as acquisition indebtedness—which can reduce how much mortgage interest is deductible
Suspension of the home equity indebtedness interest deduction (except for acquisition indebtedness)