On December 20, 2017, both the United States House of Representatives and the United States Senate passed what is known as the Tax Cuts and Jobs Act, which is the most sweeping income tax reform since 1986. This bill will impact all taxpayers beginning in 2018 as tax rates changed and deductions were both created and eliminated. This bill includes provisions that will affect individuals, businesses, estates and trusts, pensions and retirement plans, and the treatment of certain foreign income.
Some of the provisions that will impact many individuals and businesses are:
Suspension of deductions for home equity indebtedness and the deduction for home mortgage interest is limited to indebtedness of $750,000 ($375,000 for married taxpayers filing separately), (certain existing mortgages are grandfathered),