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REDWOOD CITY <br />F <br />NJ <br />10% <br />12% <br />22% <br />24% <br />32% <br />35% <br />37% <br />$9,525 <br />$38,700 <br />$82,500 <br />$157,500 <br />$200,000 <br />$500,000 <br />> $500,000 <br />$19,050 <br />$77,400 <br />$165,000 <br />$315,000 <br />$400,000 <br />$600,000 <br />> $600,000 <br />• Reduced from 35% to 21 %. <br />• Marks the largest one-time <br />decline in U.S. history and <br />amounts to almost $1 trillion <br />of tax cuts over the next <br />decade. <br />Source: The Washington Post, Business Insider. <br />GOP Tax Cuts and Jobs Act <br />• Can deduct up to <br />$10,000 in a blend of <br />state and local property, <br />income, and sales tax. <br />The state and local <br />deduction was <br />previously unlimited. <br />• Deductible interest on <br />mortgage capped at <br />$750,000. <br />• Pass-through <br />businesses like limited <br />liability corporations <br />allowed to deduct 20% <br />of their earnings. <br />However, this will expire <br />after 2025. <br />For the Quarter Ended December 31, 2017 <br />Market Update <br />• Child tax credit raised <br />from $1,000 to $2,000 <br />per child. <br />• The estate tax <br />exemption will be <br />doubled from $5.5 <br />million to $11 million. <br />• Businesses will be <br />exempt from paying the <br />corporate alternative <br />minimum tax. <br />• The deduction for <br />interest on education <br />loans, qualified tuition <br />expenses, and <br />expensive medical bills <br />would be maintained. <br />• No changes will be <br />made to 401(k) plans. <br />• One-time tax on <br />repatriated cash and <br />profits will be 15.5%, up <br />slightly from the 14% to <br />14.5% that had been <br />proposed in earlier <br />versions. <br />PFM Asset Management LLC 18 <br />