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Tag Archive for Tax Cuts and Jobs Act

Tax Cuts and Jobs Act (H.R.) Changes Made To The Committee-Reported Bill During Floor Consideration

US Senate Finance Committee _ TCJA

Changes Made by the Perfecting Amendment (Hatch #1618)

(Note: All JCT estimates are relative to the committee-reported version of H.R. 1)

Modifications
Increased Pass-Through Deduction (Sec. 11011)

  • This provision increased the deduction for qualified business income on individual returns from 17.4 percent to 23 percent of such income.
  • JCT Estimate: Change would reduce revenues by an additional $114 billion over ten years.

Extended Bonus Depreciation (Sec. 13204)

  • This provision extends the bill’s five-year 100 percent expensing period for an additional four years, decreasing gradually over that time.
  • JCT Estimate: This change would decrease revenues by $35 billion over ten years.

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Best Business Entity Structure After Tax Reform – S-Corp And C-Corp

William Rogers

There’s no easy answer to this question, though the entity choice considerations have undergone some changes due to the new tax law. For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, including partnerships, S corporations, and, typically, limited liability companies (LLCs). The top rate, however, dropped only slightly, from 39.6% to 37%.

On the surface, that may make choosing C corporation structure seem like a no-brainer. But there are many other considerations involved.

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IRS To Highlight Tax Reform Changes Affecting Small Businesses

IRS to highlight tax reform changes affecting small businesses

Small business owners, self-employed should plan now for new changes

With just a few months left in tax year 2018, the Internal Revenue Service today urges small business owners to learn about how the new tax law changes may affect them.

The Tax Cuts and Jobs Act, passed in December 2017, made tax law changes that will affect virtually every business and individual in 2018 and the years ahead. Among other things, the new law may change their tax rates and impact the quarterly estimated tax payments they are required to make during the year. Read more

Charitable Contributions

Kazim Qasim Charitable Contributions

With the change in the season and the return of fall, many people begin the act of making their homes less cluttered, and we will all begin to get donation requests in the mail.  As the weather cools, we tend to turn an eye towards end of year tax moves as well.  The Tax Cuts and Jobs Act of 2017 brought about many changes in how businesses and individuals are going to operate starting for 2018 onward.  With the deviations to the itemized deductions that we are all so used to, rethinking your charitable giving is a must. Read more

For Many Business Taxpayers, Time Is Running Out To Elect Out Of New 100-Percent Depreciation Deduction For 2017

IRS Time Is Running Out To Elect Out Of New 100 Depreciation Deduction

The Internal Revenue Service today reminds business taxpayers who placed qualifying property in service during 2017 but choose not to claim the new 100-percent depreciation deduction, that they have a limited time to file the required election with the IRS.

In general, individuals and calendar-year corporations must file the election with the IRS by Oct. 15, 2018. The new 100-percent deduction allows businesses to write off most depreciable business assets in the year they are placed in service. Read more

IRS Issues Guidance On Tax Cuts And Jobs Act Changes On Business Expense Deductions For Meals, Entertainment

IRS Issues Guidance On Tax Cuts And Jobs Act Changes

The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA).

The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. Read more

New Deduction For Pass-Through Entities

Haik Chilingaryan- Tax Deductions For Passthroughs

Under the new tax laws (“TCJA”), there is a new deduction available to owners of pass-through entities. Section 199A of the Internal Revenue Code allows owners of pass-through entities to deduct up to 20% of their business income from their income taxes. The first portion of this article provides an overview on the various types of pass-through entities that are included under Section 199A. The second portion of the article provides an analysis on the conditions that the owners of pass-through entities must satisfy in order to qualify for the 199A deduction.

PASS-THROUGH ENTITIES

For purposes of Section 199A, the following entities are entitled to the deduction: sole proprietorships, partnerships, limited liability companies, S corporations, trusts, and estates. The most distinguishing characteristic of pass-through entities is that the entities themselves generally do not pay tax. Instead, all of the earnings and expenses are passed through to the owners who pay the taxes on their individual tax returns. The sections below provide an overview on the general characteristics of each type of pass-through entity.

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Congressional Record – Tax Cuts And Jobs Act (Part 20)

Congress, Tax Cuts And Jobs Act, tax reform

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. LARSON of Connecticut: Mr. Speaker, I yield to the gentlewoman from Texas (Ms. Jackson Lee) for a unanimous consent request.(Ms. JACKSON LEE asked and was given permission to revise and extend her remarks.)

Ms. JACKSON LEE: Mr. Speaker, I include in the Record The Washington Post op-ed, “The Republican tax plan’s five worst dangers,” by Secretary Rubin, dated November 15, 2017

[From the Washington Post, Nov. 15, 2017]

The Republican Tax Plan’s Five Worst Dangers

(By Robert Rubin) Read more

Congressional Record – Tax Cuts And Jobs Act (Part 19)

Congress, Tax Cuts And Jobs Act, tax reform

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. BRADY of Texas: Mr. Speaker, I reserve the balance of my time.

Mr. LARSON of Connecticut: Mr. Speaker, I yield 1 minute to the gentlewoman from Texas (Ms. Jackson Lee), the voice of Houston.

Ms. JACKSON LEE: Mr. Speaker, this is not the American Dream tax plan. This is the American nightmare, a tax scam of the worst proportion. Read more

Congressional Record – Tax Cuts And Jobs Act (Part 18)

Congress, Tax Cuts And Jobs Act

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. LARSON of Connecticut: Mr. Speaker, I yield the gentleman from New York an additional 15 seconds.

Mr. CROWLEY: Mr. Speaker, on behalf of hardworking Americans throughout this country, I say, vote “no” on H.R. 1, vote “no” on H.R. 1 percent.

Mr. BRADY of Texas: Mr. Speaker, I yield 1 minute to the gentleman from Kansas (Mr. Estes).

Mr. ESTES of Kansas: Mr. Speaker, I thank Chairman Brady for his efforts to get this tax reform bill done.

Our outdated and uncompetitive Tax Code has led to slow economic growth over the past decade in America. Today, we are taking an important step to fix that. The Tax Cuts and Jobs Act will reform the Tax Code and help foster economic growth. Read more

Congressional Record – Tax Cuts And Jobs Act (Part 17)

Congress, Tax Cuts And Jobs Act

(This post directly follows the previous post which now focuses on discussion and debate of the new tax bill.)

Mr. BRADY of Texas: Mr. Speaker, I yield 3 minutes to the gentleman from North Carolina (Mr. McHenry), our chief deputy whip.

Mr. McHENRY: Mr. Speaker, I thank the chairman of the Ways and Means Committee for his hard work and effort, his staff’s effort, and his committee members’ effort to put this great bill on the floor today.

The Tax Cuts and Jobs Act is a vitally important bill. This will help all Americans’ lives for the better. The name fits for this bill as well. It truly is a tax cut for American working families, and it creates good-paying jobs. Read more

Congressional Record – Tax Cuts And Jobs Act (Part 16)

Congressional Record,

(This post directly follows the previous post which asked to oppose the language effectively repealing the Johnson Amendment for houses of worship.)

Ms SANCHEZ: Mr. Speaker, I include in the Record two letters in opposition to this bill, one from SEIU and one from the AFL-CIO. Read more

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