CPA/Bookkeeping Paso Robles Company, North County Tax & Accounting, Releases Details on GOP Tax Plan

Posted: 10:32 am, October 17, 2017 by Access Publishing

–North County Tax & Accounting, an Atascadero tax company, recently released details regarding the proposed GOP tax plan, and how it might affect taxpayers in high tax states like California. Most notably, the company focused on how a married couple with taxable income of $200,000 would be affected.

According to the Robert S. Borish, CPA, of North County Tax & Accounting, renters who do not itemize deductions will benefit from the GOP tax plan since their standard deduction and exemption increases from $12,700 to $28,900. While married couples that itemize deductions will lose their state tax deduction and $8,100 exemption. Borish stated that a married couple with $200,000 of taxable income that itemizes would lose $24,000 of deductions. Surprisingly, the tax increase for this couple is only $537 since their AMT tax of $1,100 is eliminated and their overall Federal tax rate is 2% less than under current rules.

However this is not a tax cut and there are a lot of moving parts with the GOP tax bill which means there will be winners and losers according to Borish. “While tax simplification is a goal of the GOP bill, the easiest way to ensure fairness to all taxpayers is to make these few changes: