Advisor Insight

What does Trump have in store for your tax return?

Bill Smith, managing director at CBIZ MHM
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President-elect Donald Trump spoke about his tax plan throughout his campaign, and now that he'll be taking the Oval Office, he has a chance to make his plans a reality. Here are 10 key provisions from Trump's campaign tax plan that he endorses.

Corporate tax

A worker assembles stand mixers on the production line at the Whirlpool Corp. KitchenAid manufacturing facility in Greenville, Ohio, U.S., on Thursday, Sept. 24, 2015.
Luke Sharrett | Bloomberg | Getty Images

Tax rates would be capped at 15 percent. Most incentive deductions and credits would be eliminated, with the exception of the research-and-development tax credit. Manufacturers would lose their deduction for interest expense but would be able to expense immediately all of their investment costs. The corporate alternative minimum tax (AMT) would be repealed.

Individual tax

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Because of the increase to the standard deduction discussed below, individuals with adjusted gross income (AGI) up to $15,000 and married filing joint (MFJ) couples with AGI up to $30,000 would pay no tax. MFJ taxpayers would pay a 12 percent rate if their AGI remains under $75,000, 25 percent if their AGI falls between $75,000 and $225,000, and 33 percent if AGI exceeds $225,000. Carried interests would be taxed as ordinary income, and the individual AMT would be repealed.

Capital gains

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Tax rates on capital gains would be capped at the current rate of 20 percent.

Estate taxes

Estate tax return
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Estate taxes would be repealed, but capital gains exceeding $10 million that are held until death would be subject to tax.

International tax

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A one-time deemed repatriation tax of 10 percent would be levied on corporations with cash held overseas.The deferral of corporate income earned abroad would be repealed.

Exemptions, deductions and credits

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Itemized deductions would be capped at $100,000 for single filers and $200,000 for MFJ. The standard deduction would increase to $15,000 for single filers and $30,000 for MFJ, and personal exemptions would be eliminated.

Net investment income tax

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Affordable Care Act

A man holds a sign calling for the repeal of the Affordable Care Act during a rally for Senate Minority Leader Mitch McConnell (R-KY) at Brandeis Machinery & Supply Company on October 31, 2014 in Louisville, Kentucky.
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Repeal and replace.

Childcare: Business

Children play with employees in daycare.
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A credit for offering onsite childcare would increase to $500,000, and the recapture rules would be reduced to five years. Direct employee subsidies would be taxable to the employee.

Childcare costs

Babysitter with fours children; the quest to find the ideal babysitter for the start of the school year worries most parents before the beginning of the summer holidays.
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An above-the-line deduction for childcare for up to four children or elderly parents would be capped at state average costs. Stay-at-home parents would have a similar deduction. Spending rebates would also be available through the earned-income tax credit.