Zombie Tax Apocalypse
“List of the Undead”
The Zombie Tax Apocalypse is coming in 2026, when the undead tax laws killed and replaced by the 2017 Tax Cuts and Jobs Act, arise at sunset from their graves among the footnotes of the Internal Revenue Code, to walk the earth and devour their newly born counterparts. Some are early risers. So look out!
A List of the Undead
- Individual higher tax rates & brackets return from the grave.
- Estate and Gift tax rates return at half strength.
- Bonus depreciation, an early riser in 2024, returns only for new assets and at half strength.
- 20% flow through deduction, devoured by the undead.
- Standard deduction returns at half strength.
- Personal exemptions return from the grave.
- The pillar of SALT deductions (state and local income and real property tax deductions), return from the grave.
- Mortgage home equity deduction returns from the grave, and the $750K acquisition debt ceiling becomes a changeling, back to $1 million.
- Net operating loss (NOL) excess business loss devoured by the undead.
- Casualty loss deduction returns from the grave.
- Gambling loss limitation on gambling related expense is set free from its chains.
- Child care tax credit shrinks at the sight of the apocalypse.
- Medical expense deduction 7.5% floor is a changeling in 2019, back to 10%.
- Charitable contribution limit cringes back to 50% at the sight of the apocalypse.
- Miscellaneous itemized deductions return with their 2% limitation from the grave.
- Pease limitation sneaks out to devour reborn zombie itemized deductions.
- Qualified bicycle commuting exclusion zombie rides again.
- Moving expense reimbursement exclusion is back from the grave.
- Moving expense deduction is back from the grave.
- AMT exemption shrinks at the sight of the apocalypse.
- ABLE accounts that achieved a better life for the disabled in 2018, lose this life, and their ability to roll over with 529 tuition programs.
- Student loan debt discharge on death or disability, the debt is reincarnated from its grave.
- 529 plan payment of elementary and secondary school expenses, devoured by the undead.
- Employer credit for paid family and medical leave, devoured by a zombie early in 2020.
Should you have any questions concerning the recent tax reform, please contact Gary M. Harden.
Disclaimer: The article in this publication has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.