Changes in Corporate Tax Rate

Business can deduct the cost of depreciable assets in one year instead of amortizing them

Corporate Rate Lowered from 35 to 21 percent

Corporate Rate is Territorial
     Foreign Income is Tax Free
      No need to keep profits overseas

Past profits repatriated at Tax rate of 15.5% for cash and 8% for equipment
Consider: Use oversea cash to buy equipment and ship the equipment to US


Standard Deduction for Pass-through business 20%
Deduction phases out for service professionals once income reaches
       $157,500.00 for single
       $315,000.00 for Joint

Pass-through companies account for about 95 percent of U.S businesses –
sole proprietorships, partnerships and S corporations
are all examples of pass-through businesses.

All of the Trump's businesses are pass-through businesses

Consider: Advantage of owning taxable bonds in a pass-through cooperation


Limits ability to deduct interest expense to 30% of EBITDA
This provision ends in 2025

EBITDA is net income with interest, taxes, depreciation and amortization added back