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Tag Archive for Tax Cuts and Jobs Act

Congressional Record – Tax Cuts And Jobs Act (Part 14)

Congressional Record Part 14

SECTION 5201 EXEMPTS HOUSES OF WORSHIP FROM THE JOHNSON AMENDMENT

Section 5201 allows houses of worship to endorse candidates so long the endorsement is made during a religious service or gathering, is made in the ordinary course of their tax-exempt purpose, and does not incur more than a de minimis incremental expense. This would, in effect, exempt houses of worship from the Johnson Amendment. Read more

Taxpayers And Gift Tax Return Reporting

Gift taxes were created to prevent wealthy taxpayers from transferring their estates to their beneficiaries via gifts and thus avoid estate taxes when they pass away. But that does not mean only wealthy taxpayers need to be concerned with the gift tax provisions as, under many circumstances, even lower-income taxpayers may find they are liable for filing a gift tax return.

The government uses the gift tax return to keep a perpetual record of a taxpayer’s gifts during their lifetime, and gifts exceeding the amount that is annually exempt from the gift tax reduce the taxpayer’s lifetime estate tax exclusion, which is currently $11.18 million (nearly a two-fold increase from the 2017 exclusion as a result of the Tax Cuts and Jobs Act of 2017).

So what does this have to do with me you ask, since your estate is significantly less than $11.18 million? Well, your estate may be less than $11.18 million now, but what will it be when you pass away? You never know. Another concern is that the IRS requires individuals to file gift tax returns if their gifts while living exceed the annual exemption amount.

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Congressional Record – Tax Cuts And Jobs Act (Part 7)

Congressional Record - Tax Cuts And Jobs Act Part 7

Signers of the Community Letter

The Community Letter in Support of Nonpartisanship, signed by more than 5,500 organizations from every state and every segment of the charitable and foundation communities, makes a strong statement in support of nonpartisanship and urges those who have vowed to repeal or weaken this vital protection to leave existing law in place for nonprofit organizations and the people they serve.
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Congressional Record – Tax Cuts And Jobs Act (Part 6)

Congressional Record - Tax Cuts And Jobs Act Part 6

Mr. HENSARLING. Mr. Speaker, for almost a decade, Americans suffered under  Obamanomics. Their savings remain decimated, their paychecks were stagnant, and their American dreams were diminished. But, Mr. Speaker, a new day has dawned. Under the leadership of President Trump, Speaker Ryan, and Chairman Brady, we are on the precipice of passing a fairer, flatter, simpler, and more competitive Tax Code, one built for 3-plus percent economic growth. The American people can now imagine a Tax Code that brings jobs and capital back to America. They can imagine a Tax Code that is simplified from 70,000 pages to 500, where 90 percent of Americans can fill out their return on a postcard. They can imagine a Tax Code swept of all the special interest loopholes. They can imagine a Tax Code creating lower rates for working Americans and small businesses, and they can now imagine a Tax Code that is all about economic growth. All my friends on the other side of the aisle can offer is the politics of division, envy, and class warfare.I am proud to support the Tax Cuts and Jobs Act because it is all about better jobs, fair taxes, and bigger paychecks.

Mr. NEAL. Mr. Speaker, 17,000 people in Mr. Hensarling’s district will now pay higher interest on their student loan deductions.Mr. Speaker, I yield 2 minutes to the gentleman from Wisconsin (Mr. Kind), who is a great advocate for the heartland of America.

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Congressional Record – Tax Cuts And Jobs Act (Part 5)

Congressional Record - Tax Cuts And Jobs Act Part 5

Mr. LARSON of Connecticut. Lastly, Mr. Speaker, I include in the Record a letter from the Congressional Budget Office, which details out the other shoe to fall in this legislation.

Congressional Budget Office, U.S. Congress,

Washington, DC, November 13, 2017

Hon. Steny H. Hoyer,Democratic Whip, House of Representatives,

Washington, D.C.

Dear Congressman:

This letter responds to your request for information about the effects of legislation that would raise deficits by an estimated $1.5 trillion over the 2018-2027 period, specifically with respect to a sequestration–or cancellation of budgetary resources–in accordance with the Statutory Pay-As-You-Go Act of 2010 (PAYGO; Public Law 111-139).The PAYGO law requires that new legislation enacted during a term of Congress does not collectively increase estimated deficits.

The Office of Management and Budget (OMB) is required to maintain two so-called PAYGO scorecards to report the cumulative changes generated by new legislation in estimated revenues and outlays over the next five years and ten years. If either scorecard indicates a net increase in the deficit, OMB is required to order a sequestration to eliminate the overage. The authority to determine whether a sequestration is required (and if so, exactly how to make the necessary cuts in budget authority) rests solely with OMB.

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Congressional Record – Tax Cuts And Jobs Act (Part 4)

Congressional Record - Tax Cuts And Jobs Act Part 4

Mr.LARSON of Connecticut. Second, Mr. Speaker, I include in the Record a letter out of a cross section of constituents who are directly and adversely impacted by this tax increase.

MIDDLE CLASS CUTS

Ms. Diane Hebenstreit–West Hartford, CT 06107

I am a lifetime resident of Connecticut, and I ask that you do not vote for the proposed Federal Tax plan. From what I see, it’s providing large tax breaks that benefit the rich and the corporations. The estate tax benefit we have now is more than generous, only the very wealthy will benefit from repealing the estate tax. The proposed caps on state and property tax deductions combined with the increased standard deduction, will cause myself as well as others to use the standard deduction instead of itemizing. This will eliminate the financial benefit of owning my home, and I am concerned it will negatively affect its value.

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Congressional Record – Tax Cuts And Jobs Act (Part 3)

Congressional Record - Tax Cuts And Jobs Act Part 3

At the time, I was the Senate majority leader in Michigan under the last administration, overseeing the only Republican branch of government. I saw firsthand how the administration pursued targeted tax credits, one after the other, that favored one industry over the other.

It was a classic example of government picking winners over losers, and as expected, it failed miserably.

As we see at the Federal level today, in Michigan, these targeted tax benefits were paid for by everyone else in the form of tax increases, and not only did it fail to attract growth in emerging sectors as they had hoped, but it caused our economy to go into a tailspin, a very serious tailspin.
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Congressional Record – Tax Cuts And Jobs Act (Part 1)

Congressional Record - Tax Cuts And Jobs Act Part 1

This series originated from the House of Representatives Congressional Record on the Tax Cuts And Jobs Act. TaxConnections provides this important document to you in a  multipart series to educate tax professionals and taxpayers.

The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further consideration of the bill (H.R. 1) to provide for reconciliation pursuant to title II of the concurrent resolution on the budget for fiscal year 2018, will now resume. The Clerk read the title of the bill.

The SPEAKER pro tempore. When proceedings were postponed on Wednesday, November 15, 2017, 1 hour 58\1/2\ minutes of debate remained on the bill. The gentleman from Texas (Mr. Brady) has 61 minutes remaining, and the gentleman from Massachusetts (Mr. Neal) has 57\1/2\ minutes remaining. The Chair recognizes the gentleman from Texas. Mr. BRADY of Texas.

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Complimentary: Tax Cuts And Jobs Act Corporate Tax Provision Webinar Friday, August 24th 2018

Tax Webinar- Corporate Tax Provision And Tax Cuts And Jobs Act

TaxConnections invites tax professionals working in corporate tax departments to learn from nationally recognized tax provision instructor Nick Frank. After working with sophisticated tax software in Big Four and a Fortune 500 company, Nick developed a program to simplify the tax provision process.

For those of you who have attended his previous webinars through TaxConnections invitations, you now understand why Nick is such a fantastic instructor of the corporate tax provision.

If you have not had the opportunity to participate in one of Nick Franks tax provision webinars, please do so with our compliments. All you need to do is REGISTER HERE.

This course will cover ASC 740 process design in the context of the 2017 Tax Cuts and Jobs Act.

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Tax Planning Under The Tax Cuts And Jobs Act For Pass-Through Entities

John Dundon, Pass-Throughs And Tax Cuts And Jobs Act

Now that the Tax Cuts and Jobs Act (TCJA) is in full swing, many of you have been clamoring for tax planning strategies. This post addresses some essential aspects of the TCJA and suggests some strategic implications to be used for planning purposes.

One of the most significant changes coming out of the TCJA are the new tax rates:

  • The individual tax rate is reduced to a maximum 37%.
  • Tax rate for a pass-through entities can be reduced by 20%.
  • The corporate tax rate is reduced from 35% to as low as 21%.

As a result of these new tax rates there is a growing debate over whether a business should be organized as a pass-through entity or a full blown ‘C’ corporation.

Families with multiple businesses in various life cycle stages are compelled to think very carefully about tax implications associated with their ‘portfolio’ of business entities.
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Many Corporations Will Pay A Blended Federal Income Tax This Year Under The New Tax Reform Law

IRS

Many U.S. corporations elect to use a fiscal year end and not a calendar year end for federal income tax reporting purposes.  Due to a provision in the recently enacted Tax Cuts and Jobs Act (TCJA), a corporation with a fiscal year that includes Jan. 1, 2018 will pay federal income tax using a blended tax rate and not the flat 21 percent tax rate under the TCJA that would generally apply to taxable years beginning after Dec. 31, 2017.

Corporations determine their federal income tax for fiscal years that include Jan. 1, 2018, by first calculating their tax for the entire taxable year using the tax rates in effect prior to TCJA and then calculating their tax using the new 21 percent rate, subsequently proportioning each tax amount based on the number of days in the taxable year when the different rates were in effect.  The sum of these two amounts is the corporation’s federal income tax for the fiscal year.

The blended rate applies to all fiscal year corporations whose fiscal year includes Jan. 1, 2018.  Fiscal year corporations that have already filed their federal income tax returns that do not reflect the blended rate may want to consider filing an amended return.

The federal sequester law remains in effect for the 2018 federal fiscal year. Corporations need to be aware of how this may affect their tax credits and refunds. Revised forms and instructions can be found on IRS.gov.

 

 

Tax Cuts And Jobs Act: Credits For Family Leave And Medical Expenses

Charles Woodson, Tax Credits For Family Leave And Medical Expenses

The Tax Cuts and Jobs Act that was passed last year included a new tax credit for employers that allows them to claim a credit based on wages paid to qualifying employees while they are on family and medical leave.

To qualify for the credit, an employer must have a written policy that provides at least two weeks of paid family and medical leave annually to all qualifying employees who work full time, which can be prorated for part-time. The wages paid during the leave period cannot be less than 50 percent of what the employee is normally paid.

The credit is variable. It begins at 12.5% and increases by 0.25%, up to a maximum of 25%, for each percentage point that the rate of payment exceeds 50% of the employee’s normal pay.

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