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Tag Archive for Annette Nellen

Tax Cuts And Jobs Act – Professor Annette Nellen Highlights Changes In Tax Legislation On Existing Tax Code

Tax Reform – A Few Provisions In Track Changes

I often find it helpful to see how tax legislation changes existing Internal Revenue Code sections. So, I took a few and made the modifications called for in P.L. 115-97 (12/22/17) (the Tax Cuts and Jobs Act), and show how they change the relevant Code section using track changes.  I also include the effective date information.  For the changes to 448, I also include a caution about how the favorable methods changes don’t apply to “tax shelters” which could include some limited partnerships and LLCs even though they don’t act like a typical tax shelter.

Here are the ones I modified:

Section 1 – tax rates including kiddie tax change

Section 62 – changes to AGI

Section 163 – changes to mortgage interest and the new interest limitation for non-small entities (and tax shelters – see comment above)

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What The Taxman Can Learn From Crypto

We are in the midst of a “Fourth Industrial Revolution” in which technology is advancing at an exponential pace, bringing us mostly digital tools and processes. In the tax world, “digital” translates to: “how do rules designed for a tangible world apply?”

Cryptocurrency is a great example to remind us that tax as well as other laws and compliance processes need to be fluid to keep our economy moving ahead. Inaction or inappropriate responses can shut down or decelerate advancements that benefit society and lead to further technological progress.

From the late 1960s, when software was decoupled from hardware, to the birth of bitcoin nearly a decade ago, what have we learned that can help us deal with this asset and its uses as we encounter even more new forms of technology, uses and ways of doing business? This article suggests four tax lessons.

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Tax Reform Links and Examples

UPDATED 12/2/17: Tax reform is moving along. The House Ways and Means Committee introduced its bill – H.R. 1, on November 2 and the House passed it on November 16. The Senate Finance Committee released its proposal on November 9 and passed it on November 16. Late on 12/1/17, the Senate passed a bill that made numerous amendments to the bill passed by the Senate (see the list of amendments in this JCT document). Now the House and Senate need to create a conference committee to work out the differences among the bills and that version will go back to House and Senate for votes.  Or, perhaps the House will just pass the Senate version, but I don’t think so. I think there are some items the House doesn’t like such as the corporate rate reduction not starting until 2019.

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Today’s Tax Reform Cost – How Much is $1.5 Trillion?

A budget agreement that preceded current tax reform efforts included that tax reform can “cost” up to $1.5 trillion over ten years (H.Con. Res. 71).

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California College Access Tax Credit Reminders

California’s College Access Tax Credit Program started in 2014. For individuals, it allows a large credit for donations made to this fund. Before claiming any credit though, the donor must first apply for the credit with the State Treasurer. This is because a fixed amount of credits is available so people claim it on a first-come-first-serve basis. In the first few years, little was claimed relative to the amount allocated.

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Tax Reform Observations and What To Expect Next

What an exciting month so far for tax reform! We have an amended bill passed by the House Ways and Means Committee (by vote of 24-16). The bill, H.R. 1, Tax Cuts and Jobs Act, was introduced just one week earlier. On November 9th, the Senate Finance Committee also released a 253-page summary by the Joint Committee on Taxation (most of the pages describe current law).

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Next Week’s Agenda: TEI-SJSU- High Tech Tax Institute Conference

The annual High Tech Tax Institute is a two-day conference where speakers and attendees from around the world show up to experience the tax professionals event of the year.

This year, the High Tech Tax Institute starts on November 13, 2017 and wraps up on November 14, 2017.

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TEI-SJSU- High Tech Tax Institute Conference Less Than 2 Weeks Away!

The annual High Tech Tax Institute is a two-day conference where speakers and attendees from around the world show up to experience the tax professionals event of the year.

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33rd Annual TEI-SJSU- High Tech Tax Institute Conference Is Right Around The Corner!

Annette Nellen, Tax Advisor

Since 1988, the High Tech Tax Institute has hosted a two-day conference where speakers and attendees come from around the world to experience this tax professionals event of the year. Don’t miss out on this learning and networking opportunity as it is sure to be an invaluable tax experience!

This year, the High Tech Tax Institute starts on November 13, 2017 and wraps up on November 14, 2017.

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Tax Reform Framework: A Summary & Observations

Annette Nellen, Tax Advisor

On September 27, 2017, the Big 6 released their Tax Reform framework to guide the drafting of Tax Reform Legislation. Here is my summary and observations.

The plan also states President Trump’s Four Principles of Tax Reform:

  1. Simple, fair, easy to understand
  2. Give American works a pay raise.
  3. Make America a jobs market of the world
  4. Bring back trillions of dollars of unrepatriated earnings

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You are Invited! View TEI-SJSU’s High Tech Tax Institute Conference Agenda

Annette Nellen, Tax Advisor

The SJSU MST Program manages and co-sponsors three annual tax conferences. Our hallmark High Tech Tax Institute, started in 1988, is a two-day conference held each November. Speakers and attendees come from around the world. Leading edge topics relevant to high tech companies and their tax professionals are addressed by nationally and internationally recognized practitioners and government representatives who have practical experience of implementation. The learning and networking opportunities makes the annual TEI-SJSU High Tech Tax Institute an invaluable educational tax experience for accountants, attorneys, and corporate representatives who serve high technology businesses.

33rd Annual TEI-SJSU High Tech Tax Institute – November 13 & 14, 2017

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Tax Reform Framework Observations

On September 27, the “Big 6″* released their tax reform framework. It doesn’t add much more than we have known for the past 16 months other than:

  • Top corporate rate is 20% rather than President Trump’s 15%. The 20% rate should help us be more competitive internationally, particularly along with a shift from a worldwide system to a territorial one (15% would be better, other than for the budget effect).
  • The individual brackets will be 12%, 25% and 35% and perhaps something higher than 35%. In April, President Trump suggested 10%, 25% and 35% while last June the House Republicans suggested 12%, 25% and 33%. Today’s lowest bracket (other than zero) is 10%. Seems odd to try to sell tax cuts with a higher lowest rate, but the effect also depends on where the brackets start and end and a few other provisions.

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