Wells Fargo – The Private Bank

Take advantage of historic tax changes now

What to review before year-end


Recent tax-law changes may bring opportunities for you and your family, so it’s good to know what to look for and when to take action. Download our 2018 Year-End Planning Guide now to find out about potential impacts to your estate, charitable giving strategy, business, and more. Then, contact The Private Bank to discuss how our responsive, team approach to wealth planning may benefit you now and year-round.

Get a brief summary of key opportunities for high-income households.

Changes for high-income households

Top tax rate reduced to

An increase in the 2018 Alternative Minimum Tax (AMT) exemption and phase-out amounts

Exemption amounts


Phase-out amounts


New 2018 standard deduction





Up from $6,350 and $12,700 respectively

Your Estate

Transferring more wealth tax-free

More taxpayers with taxable estates may now reduce or eliminate estate, gift, and generation-skipping transfer (GST) taxes thanks to the doubling of the federal exclusion amounts (the amount you can give free of transfer taxes).

You still need to consider, and plan for, state estate tax. When discussing these options with your advisors, be sure they know in which states you own property.

Tax-free transfer amounts doubled





After 12/31/25 amounts revert back to 2017 levels
(adjusted for inflation).

Your Giving

Review your 2018 gifting strategies

You can give up to $15,000 in 2018 to as many people as you like without paying a gift tax or using up any of your $11.18 million lifetime exclusion.

Education gifting

You can now accelerate 529 contributions by making 5 years of annual gifts to each beneficiary (up to $75,000) in a single year.

You can make unlimited tuition payments for anyone if you pay the educational institution directly (only certain expenses qualify)

Up to $10,000 of 529 funds can now be used to pay for K-12 expenses, not just college.

Your Business

Taking the new business income deduction

A new tax deduction of 20% was introduced for owners of pass-through entities.

These include:

  • S-corporations
  • Partnerships
  • Limited liability companies
  • Sole proprietorships
  • If you qualify, you may be able to deduct either 20% of your “qualified business income” or 20% of your taxable income minus capital gains, whichever is less.


  • Income from investments, dividends, interest, and capital gains is excluded
  • Income limitations and phase-outs apply
  • Limits apply based on type of business
  • Calculating the deduction is complex, given the number of factors involved. We recommend working with your relationship manager, wealth planner, and tax advisor to determine the best strategy for you.

Let’s connect

Get more details about how The Private Bank can help with your tax and year-end planning.

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