The Acts moves the US from a worldwide tax system to a participation system by giving corporations a 100 percent dividend received deduction for dividends distributed by a controlled foreign corporation (CFC). To transition to that new system, the measure imposes a one-time deemed repatriation tax, payable over eight years, on unremitted earnings and profits at a rate of 8 percent for illiquid assets and 15.5 percent for cash and cash equivalents. 

개정세법으로 미국의 법인세 system 이 기존의 worldwide tax system 에서 territorial system 으로 전환되었습니다. 즉, CFC 로부터 받은 배당금을 dividend received deduction 로 100% 공제 가능하게 된 것입니다. 새로운 territorial system으로 가기 위해 unremitted earnings and profits 에 대해서 8% (비유동자산) 와 15.5% (cash and cash equivalents) 의 Repatriation tax (송환세) 가 부과됩니다.

Under the Act, the taxation of a US corporation’s foreign income would change from a worldwide system to an exemption system. There would be a 100% exemption from US tax for the foreign source portion of dividends paid by a foreign subsidiary to US corporate shareholders that own 10% or more of the foreign subsidiary. The provisions would be effective for distributions made for tax years ending after 31 December 2017.

법인의 해외소득에 대한 tax system 이 기존의 worldwide tax system 에서 territorial system 으로 전환되었습니다. 미국 법인들이 10% 이상 소유하고 있는 해외 자회사들이 지급한 해외 배당금에 대해 100 % dividend received deduction 이 가능해진 것입니다. 이 조항은 2018년 1월 1일부터 시행되었습니다.

The Act replaces the current graduated corporate rate structure with a flat 21 percent rate, effective in 2018 and fully repeals the corporate alternative minimum tax (AMT). On the offset side, it imposes new limits on the deduction for net business interest, repeals the section 199 manufacturing deduction and the deduction for state and local lobbying expenses, and disallows like-kind exchanges other than for real property.

2018년부터 기존의 법인 소득에 따라 달리 적용되던 법인세율이 21% 의 단일 세율로 통일되었으며 법인 alternative minimum tax (AMT) 가 폐지되었습니다. 또한 business interest 공제에 있어 새로운 제한이 시행되었고 Section 199 (domestic production activities deduction) 공제와 주정부 및 지방 정부에 대한 lobbying expenses 에 대한 공제가 사라졌습니다. Real property을 제외한 personal property 의 like-kind exchanges 가 불가능하게 되었습니다.

The Act reduces the general corporate tax rate to 21 percent for taxable years beginning after December 31, 2017. It eliminated the current brackets and the special tax rate for personal service corporations. Under section 15, a fiscal year taxpayer may obtain the benefit of the reduced corporate rate as of January 1, 2018, by computing a tentative tax under both rates, and then prorating the tentative tax based on number of days with and without the rate change to arrive at a “blended” tax.

2018년 1월 1일부터 법인세율이 21%로 인하되었고 이로 인해 기존 brackets 과 personal service corporations 에 대한 특별 법인세율이 사라졌습니다. Fiscal year 를 기준으로 하는 법인들의 경우에도 법인세율 인하 혜택을 볼수 있습니다. 즉, 2018년 1월 1일을 기준으로 그전과 그후의 날짜를 prorate 하여 “blended” 세액을 계산하는 방식입니다.

The Act repeals the corporate alternative minimum tax for tax years beginning after December 31, 2017. Taxpayers may claim a refund on any AMT credit carryovers – 50 percent of remaining AMT credits in tax years 2018, 2019, and 2020, and a refund on all remaining credits in the tax year 2021.

2018년 1월 1일부터 법인의 alternative minimum tax 가 폐지되었습니다. 법인 납세자의 경우 2018, 2019, 2020년에는 남아있는 AMT credit carryovers 의 50%까지 2021년에는 남아있는 AMT credit 전부를 환급 받을수 있습니다.

The Act increases the section 179 expense election threshold to $1 million. The phase-out of this expense election begins when the cost of qualifying property reaches $2.5 million. The Act also expands the definition of section 179 property to include certain property used in furnishing lodging, and roofs, heating, ventilation, air-conditioning property, fire protection and alarm systems, and security systems for nonresidential real property that are placed in service after December 31, 2017.

Section 179 expense election 은 세법에 근거하여 당해년도에 구입한 고정자산의 전체 취득원가를 그해에 공제할수 있게하는 election 입니다. 2018년부터 공제한도가 기존의 $500,000 에서 $1,000,000 로 증가하며 연간 고정자산 구입한도도 $2,000,000 에서 $2,500,000으로 상승합니다. 또한 상용 부동산에 사용되는 roofs, heating, ventilation, air-conditioning property, fire protection and alarm systems 과 security systems 등도 추가로 section 179 property 에 포함되었습니다.

Under current law, section 163(j) limits the ability of certain corporations to deduct interest paid or accrued on indebtedness. In general, this limit applies to interest paid or accrued by certain corporations (where no US federal income tax is imposed on the interest income).

The Act expands interest deductibility limitations consistent with the prior bills with certain adjustments. The general rule appears to remain the same as compared to prior bills: the new provision would generally limit the interest deduction on business interest to (1) business interest income, plus (2) 30 percent of the taxpayer’s adjusted taxable income. 

The amount of any business interest not allowed as a deduction for any taxable year may be carried forward for up to five years beyond the year in which the business interest was paid or accrued

세법 163 (j) 은 특정 법인의 business interest expenses 공제에 대한 조항입니다. 2018년부터 바뀐 세법에 따르면 공제가능한 business interest expenses 는 business interest income 과 법인 납세자 adjusted taxable income 의 30%를 합산한 금액을 한도로 제한됩니다. 당해년도에 공제가 안된 business interest expenses 는 향후 5년동안 이월해서 사용가능합니다.

The Act repeals the deduction for income attributable to domestic production activities effective 1/1/18

2018년 1월 1일부터 Section 199 (domestic production activities deduction) 공제가 폐지되었습니다.

Under the Act entertainment expenses incurred or paid after December 31, 2017 are nondeductible unless they fall under the specific exceptions in Code Section 274(e). One of those exceptions is for “expenses for recreation, social, or similar activities primarily for the benefit of the taxpayer’s employees, other than highly compensated employees”. (i.e. office holiday parties are still deductible). Business meals provided for the convenience of the employer are now only 50% deductible whereas before the Act they were fully deductible. 

2018년 1월 1일부터 기존50% 공제가 가능했던 entertainment expenses 에 대한 공제가 불가능하게 되었습니다. 여기서 중요한 예외조항들중 하나는 office holiday parties와 같은 직원들의 여가와 교제를 위한 비용입니다. 고용주의 편이를 위해서 직원들에게 제공하는 식사비용도 종전의 100%가 아닌 50%만 공제 가능하게 되었습니다.

The Act permits taxpayers to carryforward net operating losses (“NOLs”) indefinitely, but limits the use of NOLs to 80 percent of the taxpayer’s taxable income for the year. The Act generally does not allow carrybacks of NOLs. The 80 percent limitation, indefinite carryforward rule and no carryback rule of the Act are effective for net operating losses arising in taxable years beginning after 2017. Existing net operating losses (including for 2017) can continue to be carried back two years or carried forward for up to 20 years and can offset 100 percent of taxable income.

개정 세법에 따르면NOLs carryforward 가 연도 제한없이 무제한으로 허용되었으나 NOLs 의 연간 사용한도는 법인 납세자 taxable income 의 80%로 제한되었으며 일반적으로 NOLs 의 carryback 은 허용되지 않습니다. 위의 바뀐 내용들은 2018년 1월 1일부터 적용됩니다. 2018년 이전에 발생한 NOLs 은 종전과 같이 2년 carryback 과 20년 carryforward 가 가능하며 taxable income 의 100%를 상계할수 있습니다.

The Act limits the scope of like-kind exchange nonrecognition treatment to real property not held primarily for sale. Thus, personal property that previously qualified for nonrecognition treatment no longer qualifies under the Act. The provision does not apply to any exchange where the property disposed of or received in the exchange by the taxpayer was disposed of or received before December 31, 2017.

2018년 1월 1일부터 Real property을 제외한 personal property 의 like-kind exchanges 가 불가능하게 되었습니다. 

The Act expands the scope of eligible taxpayers who may use the cash method of accounting. It allows taxpayers with annual average gross receipts of $25 million or less to use the cash method. This gross receipt limit also applies to farming C corporations.

The Act also generally exempts taxpayers that meet the $25 million gross receipts test from the requirement to keep inventories. Rather, these qualifying taxpayers either can treat inventories as nonincidental materials and supplies or move to a method that conforms to its applicable financial statement method. Taxpayers qualifying under the $25 million gross receipts test are also excluded from the uniform capitalization rules of section 263A.

세법 개정으로 cash method of accounting 을 사용할수 있는 법인 납세자의 폭이 넓어졌습니다. 즉 연간 평균 매출액이 $25,000,000 이하인 경우 cash method 사용이 가능합니다. 또한 연간 평균 매출액이 $25,000,000 이하인 법인 납세자는 재고자산을 nonincidental materials 이나 supplies 로 처리할수도 있으며 section 263A (uniform capitalization rules) 적용에도 제외됩니다.

The Act repeals the deduction for local lobbying expenses. Therefore, amounts paid or incurred after the date of enactment would not be deductible. Under current law, other lobbying and political expenses are nondeductible, and the deductibility of local lobbying expenses has been an exception to this general rule.

기존 세법에서는 허용되었던 local lobbying expenses 에 대한 공제가 폐지되었습니다.

The Act maintains seven individual income tax brackets. The top individual income tax rate is 37 percent. It also nearly doubles the standard deduction, repeals the current Pease limitation on itemized deductions. On the revenue side, the measure repeals personal exemptions, retains the individual AMT (albeit with higher exemption amounts), pares back the deduction for home mortgage interest (with existing mortgages grandfathered), and places substantial new limits on the ability of taxpayers to deduct state and local taxes. 

개정 세법상 기존 7개의 individual income tax brackets 은 유지되었지만 세율은 10%, 12%, 22%, 24%, 32%, 35%, 37% 로 바뀌었습니다. standard deduction 은 거의 2배로 늘었고 기존의 itemized deductions 에 대한 제한이 폐지되었습니다. 또한 personal exemptions 이 없어졌고 법인과는 달리 개인에 대한 AMT 는 유지되었습니다. Home mortgage interest 에 대한 공제한도가 줄었으며 state and local taxes 에 대한 공제가 대폭 줄었습니다.

 

The Act includes a 20 percent deduction against “domestic qualified business income” from a partnership, S corporation, or sole proprietorship. 

개정 세법에 의하면 a partnership, S corporation, 또는 sole proprietorship 에서 발생한 domestic qualified business income 에 대해서 20%의 공제가 가능합니다.

The Act substantially increases the standard deduction to $12,000 for single taxpayers and $24,000 for married taxpayers filing jointly. Increased standard deductions would allow many individuals to avoid itemizing their deductions. 

Standard deduction 이 single 의 경우 $12,000, 결혼한 납세자의 경우 $24,000 로 증가하였습니다. 그 결과 많은 납세자들이 itemized deductions 을 선택하지 않을 것으로 보입니다.

The mortgage interest deduction will be limited to interest on $750,000 ($375,000 for married filing separate taxpayers) of acquisition indebtedness on a taxpayer’s primary and secondary residences. Mortgages existing on or before December 15, 2017 are grandfathered under the current $1 million threshold. The interest deduction for home equity indebtedness is repealed.

2018년 1월 1일부터 mortgage interest deduction 은 $750,000 로 제한됩니다. 하지만 2017년 12월 15일전에 발생한 mortgage 에 대해서는 종전의 $1,000,000 한도가 그대로 적용됩니다. Home equity 에 대한 interest deduction 은 페지되었습니다.

State and local income or sales and property tax deductions limited: An itemized deduction of up to $10,000 ($5,000 for married taxpayers filing a separate return) for the aggregate of nonbusiness (1) state and local property taxes, and (2) state and local income taxes or sales taxes is permitted. Nonbusiness foreign real property taxes are no longer deductible. 

State and local income or sales and property tax 에 대한 총 공제가 $10,000 로 제한되며 기존에 허용되었던 foreign real property taxes 에 대한 공제가 폐지되었습니다.

The act doubles the estate and gift tax exemption for estates of decedents dying and gifts made after Dec. 31, 2017, and before Jan. 1, 2026. The basic exclusion amount provided in Sec. 2010(c)(3) increased from $5 million to $10 million and will be indexed for inflation occurring after 2011.

개정 세법에 의하면 2018년 1월 1일부터 2025년 12월 31일까지 Sec. 2010(c)(3) 상의 basic exclusion amount 가 $5,000,000 에서 $10,000,000 로 증가합니다.