Let's Talk Tax Reform

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“With change comes opportunity…”

We have heard a lot over this year, and especially over the past few days, about tax reform.  The last time we saw tax reform was in 1986.  The above quote captures a cliché that I believe speaks to the current situation. There are several key aspects to consider, especially with less than two weeks left of 2017. 

Individual Tax Impact

  • Tax brackets for individuals have been lowered. Seven bracket structure remains, but the incomes per brackets have been adjusted
  • Limits or eliminates other deductions
  • The standard deduction has been increased to $12,000 for single filers, $18,000 for heads of households and $24,000 for joint filers in 2018

Business Tax Impact

  • Corporate income tax rate permanent to 21 percent, starting 2018
  • Increase in section 179 expensing cap to $1 million
  • Elimination of certain deductions such as domestic production activities deduction


Estate Tax Impact

  • The estate tax exemption doubles from $5.6 million to $11.2 million.  This expires at the end of 2025


The above highlights some changes with 2017 tax reform.  The standard practice of deferring income and accelerating deductions remains appropriate.  However, with some deductions being reduced or eliminated, accelerating may make a bigger impact.  With estate tax exemption doubling, it is still important to plan.  For example Illinois Estate tax exemption remains at $4 million, with no portability.

With the change in the tax structure, it is important to review your current situation to see if there are any planning opportunities for you.


Stephen Hofmann, J.D., CPA, CFP®, is an AVP, Wealth Advisor & Investment Officer, with Alpine Trust & Investment Group.




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Alpine Trust & Investment Group does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.