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Wolfgang T. Sailler
Certified Financial Planner ™

Joseph D. Witt
Certified Financial Planner ™

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PO Box 5190
Salem, OR 97304-3060

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Office: (503) 375-0208
Home: (503) 587-9811
Fax: (503) 371-2615

Important tax law changes for 2018

March 01, 2018

Those of you who work for a paycheck will by now have noticed lower federal tax withholdings even if you do not follow the news. But you will just have gotten used to the lower rates by the time they will revert back to 2017 levels in 2025. That is for individuals, the corporate tax reductions will stay in place unless a new congress and president will stop the now enacted changes. Until then the numbers in the following table are in effect.

Besides the lower general rates, the law created higher standard deductions of $12,000 for singles, $18,000 for heads of household and $24,000 for joint filers. Income up to those amounts is not taxed at all on the federal level. In turn, itemized deductions for state income and local property taxes will be limited to $10,000. Deductions for employee business expenses, brokerage and investment adviser fees (in taxable accounts), IRA fees and tax preparation costs are now limited to the amount exceeding 2% of AGI. No more deductions for theft losses. Casualty loss deductions are only allowed as a consequence of declared disasters. Charitable contributions got a boost and cash contributions can go up to 60% of AGI and the threshold for medical expense deductions was reduced from 10% to 7.5% albeit for 2017 and 2018 only.

Rates on long-term capital gains and qualified dividends remain the same but the income threshold was raised: 0% on LT gain up to AGI of $38,600 single/$77,200 joint. 15% on gains above that level but below $425,800 or $479,000 (joint). The rate is 20% above that income level. The 3.8% surtax on net investment gains remains for AGIs over $200,000 single/$250,000 joint.

Taxpayers who run a business either as sole proprietors, LLCs or S-corporations have some complicated new rules to deal with that go beyond this short notice. You need to see a tax professional, as is true in any specific situation.






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(503) 375-0208




PO Box 5190
Salem, OR 97304-3060



Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Goldmark Financial Planners, LLC, is a Registered Investment Advisor Firm in the State of Oregon. Prior to any advisory work conducted outside Oregon, Goldmark Financial Planners, LLC, would become registered in that jurisdiction or qualify for an exemption or exclusion to the registration.

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