Tag Archive for Tax Cuts and Jobs Act

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

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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

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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

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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

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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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2018 Employer Reimbursements For Employees’ 2017 Moves Are Generally Tax-Free

Employer payments or reimbursements in 2018 for employees’ moving expenses incurred prior to 2018 are excluded from the employee’s wages for income and employment tax purposes, the Internal Revenue Service announced today.

The 2017 Tax Cuts and Jobs Act (TCJA) suspended the exclusion from income for moving expenses reimbursed or paid by an employer for most employees starting in 2018, making these amounts taxable, except for amounts for active-duty members of the U.S. Armed Forces whose moves relate to a military-ordered permanent change of station. Read More

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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

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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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