Statutory Citation Packs & Primary Authority Index

Statutory framework establishing the seven individual income tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) and annual cost-of-living adjustments based on the Chained Consumer Price Index (C-CPI-U).

Establishes baseline standard deduction thresholds ($16,100 Single / $32,200 Married Filing Jointly) and additional statutory allowances for taxpayers aged 65 and older or legally blind.

Authorizes the 20% pass-through entity deduction for sole proprietorships, partnerships, and S-corporations, subject to W-2 wage limitations, UBIA property capital limits, and SSTB restrictions.

Provides a 100% federal capital gains tax exclusion on original issue stock held for more than 5 years in qualifying C-corporations up to the greater of $10,000,000 or 10 times adjusted aggregate basis.

Imposes a 3.8% healthcare surtax on investment income (capital gains, dividends, royalties, passive rental income) for individuals with modified AGI exceeding $200,000 Single / $250,000 Joint.

Sets the permanent $15,000,000 per-person federal lifetime estate and gift tax exemption, including DSUE spousal portability elections under Form 706.

Strict statutory safe-harbor rule restricting home office expense deductions to spaces used exclusively and on a regular basis as a principal place of business.

Official IRS guidance clarifying that state-level entity income taxes paid by partnerships and S-corporations are fully deductible at the entity level, effectively bypassing the federal $10,000 SALT cap.