Pub. 5 2016 Issue 8

November 2016 29 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s Reach your target audience a ordably. advertise get results KRIS MONTIONE Advertising Sales 727.475.9827 or 855.747.4003 kris@thenewslinkgroup.com • Lower the estate tax applicable exclusion amount per individual from $5.45 million to the 2009 level of $3.5 million • Raise the estate tax rate from 40 percent to 45 percent on estate values of $10 million or less, 50 percent on assets over $10 million, 55 percent on assets over $50 million and 65 percent on amounts exceeding $500 million For C corporation banks: • Clinton’s corporate tax plan focuses on restricting corporate inversions and closing special loopholes. This proposal will likely have a minimal effect on C corp community banks. There are mentions of incentives for businesses that provide good-paying jobs, but the proposed policy would primarily affect the manufacturing industry Donald Trump Donald Trump’s proposals that affect the shareholders of S corporation banks: • Collapse the seven current individual income tax brackets, ranging from 10 percent to 39.6 percent, to the following brackets for those married filing jointly: • Less than $75,000: 12 percent More than $75,000, but less than $225,000: 25 percent More than $225,000: 33 percent *Brackets for single filers are ½ of these amounts • Increase the standard deduction to $15,000 for single taxpayers and $30,000 for married filing jointly • Repeal the estate tax, but institute capital gains held at death tax • Implement a new 15 percent tax rate for businesses. This rate would be available to partnerships and S corps that retain their profits within the business • Repeal the 3.8 percent net investment income tax and the alternative minimum tax For C corporation banks: • Reduce corporate income tax rates to a flat 15 percent • Eliminate alternative minimum tax • Eliminate most corporate tax expenditures, except for research and development Both candidates are still working out the details of their plans and could make further modifications as Election Day approaches. This article is for general information purposes only and is not to be considered as legal advice. This information was written by qualified, experienced BKD professionals, but ap- plying this information to your particular situation requires careful consideration of your specific facts and circumstanc- es. Consult your tax advisor or legal counsel before acting on any matter covered in this update. Article reprinted with permission from BKD, LLP, bkd.com . All rights reserved.