POM030: Tax Reform Explained with James Crenshaw



James Crenshaw:

James Crenshaw has been helping tax clients for nearly 40 years. These clients have ranged from some of the biggest household name corporations, to senior officers of companies, to small business entrepreneurs. James specializes in designing the right customized plan to reduce taxes and provides tax compliance to all as a franchisee of Happy Tax, with a revolutionary and painless process to prepare income taxes.


In this episode, James Crenshaw joins me to review the proposed changes for U.S. tax reform and how they may affect you. Join us as we discuss:

  • What are the proposed changes and how would they affect an individual?
  • How will the proposed changes affect a business owner?
  • When will the changes start?
  • How should you plan to handle tax changes? What can you do?
  • Do you need to talk to a tax professional? How do you find one?


Latest UPDATE from James Crenshaw:

The principal differences from the information we discussed in the podcast are that the top individual tax rate will be 37%, the corporate tax rate will be 21%, the possible requirement of having to sell the oldest shares of stock first (which I suggested might prompt a year-end action to sell shares you intend to dispose of) was dropped from the final bill.


There is a new rule that ends the tax deduction for alimony payments for divorces entered into after 2018. The percentage of passthrough income to be taxed in the hands of their individual owners will be 80% (i.e., 20% of the income will be tax-exempt; although that is the technical way the rule applies, it seems it is being thought of as a special rate is being applied to the income. To a 37%-taxed individual, it is as if passthrough income in their hands is taxed at a rate of 29.6% (37% x 80%). Child tax credit will be $2,000 per child, with $1,400 being made a refundable credit.”


Resources Mentioned:

Disclaimer: Some of the links below are affiliate links. This means that if you decide the item will help you and buy it, I will earn a commission. There is no additional charge to you. However, I would never recommend anything to you that I wouldn’t use myself or wouldn’t recommend to my own family. I only recommend things that I believe will be helpful and useful. Do not buy anything unless you believe it will help you achieve your goals.


Happy Tax – tax planning and preparation service

Email James: jamescrenshaw@happytax.com


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