Tax reform Feed

A driver pulled over in La Conchita, California, the evening of Dec. 6 to save a rabbit he spotted scurrying amid flames from the Thomas Fire in Ventura County. Click image to watch full video posted on YouTube by RMG News/Reuters/NJ.com. California is on fire. Literally. Again. Just two months after the northern part of the Golden State was ablaze, deadly wildfires are raging across Southern California. And while residents right now are simply trying to stay safe and, if possible, save as much of their personal possessions as they can, in a few weeks or months, they'll be trying... Read more →


The House and Senate have officially agreed to hash out their respective tax reform differences. Both chambers passed their own versions of H.R. 1, the Tax Cuts and Jobs Act. Rather than one side accepting the other's bill, they now must come up with a new piece of legislation that incorporates some parts of both. That job falls to 14 Senators and 15 Representatives selected by their Party's leadership. Let's get this tax negotiation party started! House conferees: On the House side, Speaker Paul Ryan of Wisconsin selected nine GOP Representatives. They are: Kevin Brady of Texas (chair of the... Read more →


Time's person of the year for 2017 is a lot of people. The magazine selected all the women and men who who publicly spoke about being victims of sexual harassment and abuse as a way to stop it and help others who have been victims, known on social media as the #MeToo movement. Ironically, today's announcement of Time's 90th most notable person (called Man or Woman of the year until 1999) was overshadowed by the continuing sexual harassment controversy in the political world. Sitting and wannabe Senator troubles: Roy Moore, who is seeking Attorney General Jeff Session's former Senate seat... Read more →


U.S. families have been getting smaller in recent years, but some still have lots of children and they could end up being adversely affected by the tax law changes now under consideration. (Photo from the Forks Timber Museum Collection via Flickr) In selling their tax cuts to the American public, Republicans emphasize that the standard deduction amount is almost doubled. That sounds good. But that's not the whole story. You'll lose personal exemptions. For taxpayers, exemptions are excellent. That's especially the case for filers who have lots of dependents. Under current law, a tax exemption helps reduce your income so... Read more →


Many homeowners breathed a sigh of relief when the Senate's version of tax reform followed the House's H.R. 1, the Tax Cuts and Jobs Act, and included a tax deduction for property taxes. But it might be time to start hyperventilating again. While both chambers would keep the itemized deduction for the local real estate taxes that every homeowner faces each year, they will reduce its tax value. Each bill caps the deduction amount at $10,000. Most homeowners' taxes covered: For many homeowners, that limit is cool. Their property tax bills are high, but not into five digits, so it... Read more →


(Image by Rochelle Truong | Reddit) As we continue to plow though the Senate's version of the House tax reform bill, many folks, both on Capitol Hill and across the country, are still upset with the process used by GOP leaders to get the measure through the upper chamber. Changes traded for votes: One of the biggest complaints is about the legislative changes made on the fly to woo enough Senators to the "yea" side. That's not necessarily unusual. Quid pro quo is common in crafting legislation. But the problem for opponents of the bill was that some of these... Read more →


After 14½ hours of debate, the U.S. Senate early on Saturday, Dec. 2, approved 51-49 its version of tax reform. Now the hard work starts. (C-SPAN2 screenshot; click image to watch video of the full debate and votes) It's alive! Tax reform, or at least tax cuts (for a while, for some people) survived a marathon session in the Senate, with that chamber approving its Internal Revenue Code revisions early Saturday, Dec. 2, morning. Now the real fun begins. Since the House version (H.R. 1, the Tax Cuts and Jobs Act) passed on Nov. 16 is different from the Senate's... Read more →


Ho, Ho, Ho, hoss. It's the most wonderful time of the year. The holidays and year-end tax moves are here! (Photo by Kay Bell of a scene at Marble Falls, Texas' annual Walkway of Lights along the lake) Hello, holidays! We're so happy you and your good cheer have finally arrived. But the arrival of December also means 2017 is almost over, giving us only 31 days to take care of tax tasks that could save us money when we file our returns next year. This year, it also looks like Congress might actually make some tax changes, if not... Read more →


Feeling generous? Good. It's Giving Tuesday. This philanthropic effort, usually seen as #GivingTuesday on social media, began in 2012 as a counter to the frantic shopping on Black Friday, Small Business Saturday and Cyber Monday. Giving Tuesday's goal is to fight the commercialization and consumerism of Christmas and other end-of-year holidays. Instead of buying more goods for family, friends or yourself, Giving Tuesday organizers urge gifts to nonprofits. Such donations, the Internal Revenue Service reminds us, could produce a gift for you — a tax deduction — when you file your annual tax return next year. As noted in a... Read more →


A crush of shoppers rushes to start their Black Friday quest for bargains. (Photo via Diariocritico de Venezuela/Stan Honda/Flickr CC) Black Friday, the day-after-Thanksgiving kickoff to the holiday shopping season, may have lost some of its luster in recent years, but plenty of shoppers still hit the stores today to bargain hunt. If you're among the frenzied shoppers, hang onto your receipts if you buy a lot or big-ticket items. They could bump up your itemized tax deduction. And your 2017 tax return might be the last time you'll be able to take advantage of this deduction. Tax reform deduction... Read more →


As a wife of many years, I appreciate it when a couple likes to share big moments. But such spousal closeness backfired spectacularly when Treasury Secretary Steven Mnuchin brought his wife, Louise Linton, with him when he went to check out his signature that's now appearing on U.S. currency. But before we get to the drama, let's look at the changes coming to our dollars. Handwriting gets grade A: The good news for Mnuchin is that while folks still might have trouble pronouncing his name, they can at least read his signature. That's more that can be said for his... Read more →


In their initial tax reform bills, the House and Senate decided not to include any health care provisions so as not to muddy the tax code rewrite waters. Now, however, Senate leaders have changed their minds. Repeal of the Obamacare individual mandate has been added to the upper chamber's tax plan. While that does provide needed money maneuverability, it also could turn tax reform into a legislative mud pie mess. The House is still on track to pass its tax reform bill this evening has passed its tax reform bill, but things are much less settled in the Senate. A... Read more →


UPDATE, Thursday, Nov. 16, 2017: The House passed its tax reform bill today (but the Senate version is still a ways away from GOP consensus ). Among the yea voters on H.R. 1, the Tax Cuts and Jobs Act, was Rep. Joe Barton after he was promised that his Texas Rangers stadium concerns would be taken care of. Rep. Joe Barton is a big fan of the Texas Rangers, which play in his North Texas Congressional District. In this Facebook photo, Barton (second from left) wears the Major League Baseball club's jersey when he participates in the annual Republicans vs.... Read more →


Republicans continue to work on their tax reform bills. The House plans/hopes to vote on its bill this week, while the Senate's version, released Nov. 9, is still being analyzed. One area getting a lot of attention is the two bill's differing treatments of pass-through entities. Income from these businesses — which include sole proprietorships, partnerships, limited liability companies (LLC) and S-corporations — is passed through to the business owners, who then report it on their personal tax returns. The issue confronting lawmakers is that these earnings currently are taxed at ordinary income tax rates. Under the new tax reform... Read more →


One of the surprise differences in the Senate tax plan as compared to the House bill is in the treatment of state and local taxes, referred to by tax geeks (guilty!) as SALT. Both the House and Senate tax bills would eliminate the deductions for state and local income and sales taxes. The Senate, however, makes no accommodation for real estate taxes. That hard tax line also was originally taken by the House. But GOP leaders there, facing backlash from their members in districts where voters pay big real estate tax bills, acquiesced. The House bill revision allows the property... Read more →


The tax dueling has officially begun. The Senate on Thursday, Nov. 9, released its answer to the House's H.R. 1, officially title the Tax Cuts and Jobs Act. UPDATE, Thursday, Nov. 16, 2017: The House passed H.R. 1. Prospects for the Senate's tax reform bill, however, are muddier. While resolving difference in the two doesn't demand quite as many steps as in the 10 Duel Commandments outlined in the still incredibly popular Broadway (and touring company) musical Hamilton, it's still going to be one of the biggest face-offs in recent Washington, D.C., legislative history. Here's a look at some of... Read more →


The Internal Revenue Service's 2018 filing season calendar isn't quite this messy, but it's not firmed up yet. The House Ways and Means Committee today started marking up, otherwise known as tweaking, the Republican-driven tax reform bill. Early word is that many provisions you may have read about will change. C'est la legislative process. Meanwhile, since most of the new tax laws won't take effect until Jan. 1, we can focus on our 2017 returns that will be filed under the existing tax laws. Most of us are breathing a sigh of relief that the tax moves we've made so... Read more →


$13 billion. That's how much nonprofits say Republican-proposed changes to the tax code could cost them each year. Even though the GOP's Tax Cuts and Jobs Act would keep the itemized deduction for charitable donations, it's one of just a handful that will remain on Schedule A. In exchange for the elimination of most itemized write-offs, the House tax reform proposal calls for almost doubling the standard deduction. That shift in federal tax deduction strategy could pose a major problem for the thousands of U.S. nonprofits that rely on contributions. Fewer itemizers = less donations: Now, about a third of... Read more →


Business entities and how they are — and might be — taxed is one of the things complicating the Republican-formulated tax reform bill. The primary motivation for the Republican's new tax reform plan is to lower business tax rates. Major corporations definitely will see relief under the bill (even though many are doing quite well under our current system). But there's concern that smaller businesses won't be so tax reform lucky. In fact, the Tax Cuts and Jobs Act as the bill, as H.R. 1 is known, could make things worse for some so-called pass-through entities. Potential problems for plenty... Read more →


Before heading out on an Asian trip, the president met with House GOP members to talk tax reform. Among those at the plan briefing were, from left, Ways and Means Committee member Rep. Diane Black of Tennessee, House Speaker Paul Ryan of Wisconsin and W&M Chair Rep. Kevin Brady of Texas. (Photo courtesy Donald J. Trump Twitter account) The shiniest part of the Republicans' new tax plan is the reduction in tax rates. We would go from the current seven to just four. So how much of our earnings will fall into these new brackets? Here's what the Grand Old... Read more →