There’s something for everyone in the new tax legislation

The Tax Cuts and Jobs Act (TCJA) impacts virtually all taxpayers – individuals, corporations, partnerships and other “pass-through” business entities, estates, and even tax-exempt organizations. Our goal is to cut through the hype and explain how our clients can benefit from these changes.

Business owners will benefit from a permanent 14% reduction in the corporate tax rate, from 35% down to 21%.

Self-employed taxpayers will benefit from the new 20% pass-through
deduction for qualified business income from a partnership, S corporation or sole proprietorship.

The gift/estate/generation-skipping transfer (GST) tax exemptions have been doubled to $11.2 million per individual. Now, a married couple will not pay any federal estate tax unless their estate exceeds $22.4M. An individual can transfer up to

$11.2 million before paying the 40% GST tax and a pair of grandparents can gift over $22.4 million to their grandchildren tax-free.

Individual tax brackets and tax rates will change for most taxpayers. In comparison to previous tax brackets and tax rates, the new rates are slightly lower and the brackets are slightly broader.

Our firm takes pride in our personalized approach to client service.
Please contact us so we can understand your unique circumstances & family dynamics to tailor our advice to best meet your current and long-term needs.

Pre-TCJA rates
10%, 15%, 25%, 28%, 33%, 35%, 39.6%

New rates under the TCJA
10%, 12%, 22%, 24%, 32%, 35%, 37%

The standard personal deductions have nearly doubled:
$12,000 (single)
$18,000 (head of household)
$24,000 (married filing jointly)

Prior to this reform, about 30% of taxpayers itemized deductions on Schedule A, instead of taking the standard deduction associated with their filing status. Many of these taxpayers will now claim the higher standard deduction and therefore will not need to file Schedule A.

As always, gifting to charitable organizations can be a great way to lower one’s taxable estate, with the added benefit helping the community and preserving your legacy. The deduction for charitable contributions has been expanded so that taxpayers may contribute up to 60% of their Adjusted Gross Income.

Donohue, O’Connell & Riley is celebrating two important milestones in 2018!

Celebrating the 50th Anniversary
Attorneys James Riley & Thomas O’Connell have been advising families in the Pearl River area since 1978. Over the years, their legal work has been based on their deep & sincere desire to help people. Their practice focuses on Estate Planning & Probate and Elder Law and they have attained the highest ratings for legal ability and ethical standards.

Celebrating the 10th Anniversary
In 2008, Attorney Joseph Donohue established his practice in Warwick, NY. Since that time, he has grown the firm organically and through acquisition. He has advised hundreds of clients on how to structure their personal affairs and businesses in order to minimize taxes and assure the smooth transition of wealth between generations. Joe’s practice is multi-jurisdictional in nature, and he regularly advises clients with interests across the US as well as abroad.

Attorney Kristin Canty joined the firm in 2015 and became an equity partner in the firm in 2017. Kristin is licensed in both NY and NJ and specializes in Estate Planning, Elder Law & Estate Administration for clients across the Lower Hudson Valley.