| Show i Financial Planner Says Tax K w ism Reform Most Sweeping Ever The TAX REFORM ACT OF 1986 will be the most sweeping refo reform to ever hit the United States tax system according to Hank Brock president of Brock Associates the largest fee-based fee financial planning firm in Salt Lake City Brock a Chartered Financial Consultant and Certified Public Accountant said the tax bill will most likely be signed into law by President Reagan within the next couple of weeks the House and Senate passed the bill Brock says the new law will create three new tax brackets a 15 percent r bracket on taxable income up to approximately and a 28 percent tax bracket over that amount He noted rioted that a surcharge will be levied against those people earning more than per year creating a third bracket of 33 percent Individual retirement account deductions will not be allowed if married taxpayers have adjusted gross income of more than for single filers and are participants in employer sponsored retirement plans All interest deductions will be repealed except for mortgage interest on 1st and 2nd homes and 2nd mortgages used to improve homes and pay for medical and college expenses Brock did point out that 2nd mortgage interest is not deductible if the loan is used for consumer good autos and related purchases Brock said all exemptions per dependent will be raised to 2000 A family will have of income exempted from tax stated Brock However exemptions for the blind and those over the age of 65 will be done away with All investment income will be treated as ordinary income According to Brock other areas affected by tax reform include real estate depreciation and other business deductions For those inter interested ted in gaining more information on ol this tax reform you may do so by contacting Scott Trotter Account Executive for Hall Gardiner and Associates at |
