Order Now Order Now
Login / SignUp
Order Now

Home Free Essays

>>

All Subjects

>>

Education

>>

Finding And Summarizing Articles

Finding And Summarizing Articles

Download

Student’s Name

Instructor’s Name

Course Code

Date

Income taxation of trusts and estates after tax reform

The income tax of trust and estate after tax reform signed by President Donald Trump affect both personal and business rate of tax. It adjusts the threshold for capital income and therefore, under the new tax law people will pay high taxes for acquiring any assets. Under general section 641(b), the taxable income of an estate or trust is taxable the same way as individual income. It is, therefore, means that individuals with higher income will pay higher taxes compared to the previous years. The trust and estate deduction increased and therefore, ordinary dividends and estate taxes are increased with an exemption of $300 on personal income CITATION Wal18 \p 8 \l 1033 (Wallace and Anderson 8). However, the adjusted total income (ATI), the ATI and DNI increase under the new income tax law signed by the president. It is noted that FAI will remain the same because the allocation of expenses is being controlled by the trust governing document.

The enacted income tax law also creates an impact on the taxes paid by businesses. Under Sec. 664(c) (2), the excise tax will be 100% on any unrelated business taxable income (UBTI), received by the trust. It also reduces the taxes which are paid by SMEs from a maximum of 39.6% to 29.6%. It means that small companies and corporations will pay fewer taxes compared to the previous year 2017. The taxable income for businesses is also reduced to 80%; time 37% top and therefore, the changes may exempt electing small business trusts (ESBT) from paying any taxes CITATION Wal18 \p 2 \l 1033 (Wallace and Anderson 2). The changes in income taxes will have a negative impact on an individual's income because it increases the rate of taxes on individual income. But it lowers taxes paid by small businesses and corporate and it is likely to affect individual income negatively.

Works Cited

BIBLIOGRAPHY Wallace, Stephen C. and Kevin D. Anderson. "Income taxation of trusts and estates after tax reform." Income taxation of trusts and estates after tax reform (2018): 2-15.

More Subjects

Education

(5614)

English

(2294)

Business And Management

(1760)

Healthcare And Nursing

(1684)

Psychology

(929)

History And Anthropology

(743)

Sociology

(572)

IT

(446)

Education

(429)

Finance, Accounting And Banking

(419)

Philosophy

(347)

Political Science

(310)

Law And International Law

(308)

HRM

(300)

Economics

(288)

Biology And Life Sciences

(267)

Literature

(249)

Marketing And PR

(238)

Culture

(140)

Environmental Science

(109)

Geography

(92)

Statistics

(64)

Maths

(53)

International Relations

(44)

Physics

(30)

Chemistry

(25)

Capstone

(8)

Project Management

(8)

Reflective Thinking

(7)

Critical Review

(3)

Linguistics

(3)

Critical Appraisal

(2)

BUS 2090

(2)

English 12 Drama

(1)

Business Information Technology

(1)

Operational Plan

(1)

Corporate Finance

(1)

L2 Photography And Design

(1)

Food Nutrition

(1)

Leadership

(1)

Nursing

(1)

MBA

(1)

Social Enterprise Project

(1)

Government

(1)

Our tools

Essay typer Grammar Checker Plagiarism Checker Citation Generator

Useful Links

Free Essays About Blog

Contact me

info@freeessaywriter.net

If you have any queries please write to us

Join our mailing list

Invalid Email Address!
Thank you for joining our mailing list

Please note that some of the content on our website is generated using AI and it is thoroughly reviewed and verified by our team of experienced editors. The essays and papers we provide are intended for learning purposes only and should not be submitted as original work.

© All Rights Reserved 2023

Privacy Policy Terms of Service Use Money-Back Guarantee Contact
Back to top