Hollywood Individuals Likely Won't Cash In on Tax CutsDecember 29, 2017 – Media Mention
As stars prepare to ring in the New Year, their lawyers and business managers are poring over the new tax law.
The Tax and Cuts and Jobs Act is set to slash $1.4 trillion from the federal budget — but not everyone will be cashing in on its changes. Hollywood's elite, along with countless other California residents, will find themselves without deductions that used to be a financial failsafe.
The government estimates this change will bring in $668 billion in revenue over the next decade.
"The dramatic reduction of the property tax deduction and state and local tax deductions will likely significantly raise the effective tax rate for individuals in Hollywood — the higher their California source income and the more valuable their home, the bigger the impact of the loss of those deductions," says Laura Zwicker, an attorney to ultra-high-net-worth individuals.
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