On Wednesday, December 20th, 2017, Congress passed a comprehensive tax reform bill (otherwise known as “H.R.1”). It is now awaiting the President’s signature. Except where noted, the provisions of H.R.1 outlined in this summary are generally effective January 1, 2018 through December 31, 2025. After that date, with some noted exceptions, the rules revert back to existing law. The Act will have a significant impact on the taxation of corporations and individuals, and we encourage you to work with a tax professional to understand how these changes specifically impact your financial picture. The purpose of this document is to provide a high level overview of the impact of selected provisions of H.R.1 on US individuals, and to present topics to discuss with your financial advisor and tax professional as part of year-end planning.

The guide, provided by Morgan Stanley Wealth Management, includes:
  • A comparison of pre- and post-reform tax rules
  • Questions to consider with your professional tax advisor between now and year-end 2017
  • Advice on accelerating charitable donations in 2017 and information about the PEASE limitation.