Tax reform Feed

Pass-through taxation has been one of the most contentious and confusing parts of the debate surrounding the Republican tax bill.ese businesses — sole proprietorships, partnerships, limited liability companies (LLCs) and S corporations — are not themselves subject to federal taxation the way traditional corporations are. Instead, the income earned from these operations is passed through on the owner's personal income tax filing. As I and many, many other media outlets and bloggers have noted, the final version of H.R. 1, the Tax Cuts and Jobs Act, that House and Senate conferees approved Dec. 15 basically followed the Senate's taxing methodology... Read more →


Sen. Jon Tester (D-Montana) got testy when GOP leaders demanded Senators vote on the huge tax bill without giving them time to go through the almost 500 pages. But they did. And it passed. And the final conference deal and supporting material is even larger! (Click image to watch Tester's complaint via his Twitter account.) After the House and Senate conferees signed off Dec. 15 on the "mixed" Tax Cuts and Jobs Act, I posted a look at some of the highlights (or, depending on your political persuasion and personal tax situation) lowlights in the measure. But that one post... Read more →


There's a tax bill, but there is no tax reform. There's still an estate tax. There are still (some) state and local itemized tax deductions. There's still an alternative minimum tax. And there are enough other tweaks to confuse filers and keep tax pros very busy over the next 12 (and more) months. Ways and Means Chairman Kevin Brady (R-Texas) presides over the lone public hearing Dec. 13 of the House-Senate conference committee on H.R. 1, the Tax Cuts and Jobs Act. Final House and Senate votes on the bill are planned for next week. Basically, the Republican tax bill... Read more →


The Internal Revenue Service has good news for folks who do tax-related driving. Some auto travel amounts, however, might not matter depending on what happens with tax reform. 50 Cent via Giphy.com If your job requires you to be on the road, you'll get a bit bigger tax break for those business miles in 2018. The Internal Revenue Service's annual adjustment of the optional standard mileage rate for business use of your vehicle is a penny-per-mile more next year. The deductible per-mile rate for medical and moving also are one cent higher in 2018. The driving deduction rate for charitable... Read more →


Vice President Mike Pence (waving) and Ways & Means Chairman Rep. Kevin Brady (far right) leave a Dec. 12 meeting in which they discussed the final touches being made to the Republicans' tax bill, H.R. 1, the Tax Cuts and Jobs Act. (Photo courtesy Brady's Facebook page) Breathe a sigh of relief, all you payers of state and local income taxes. The tax bill under consideration will help you. Or not. House Ways and Means Chairman Kevin Brady (R-Texas) announced to reporters today (Thursday, Dec. 14) that conference committee members — or at least the Republican conferees — have agreed... Read more →


House and Senate tax conferees will officially meet for the first time this afternoon. As the formal "mixing" of the two tax bills begins, let's get few things straight. Neither H.R. 1, the Tax Cuts and Jobs Act, as passed by the House nor the version of that bill approved by the Senate is not real tax reform. It's mainly, per its name, a variety of tax cuts, particularly for big business and wealthier taxpayers. Neither bill simplifies the Internal Revenue Code. In fact, in several instances it complicates things. Yes, I'm looking at you pass-through provisions. Taxpayers, both business... Read more →


U.S. map from vintage state postcards by Design Turnpike/Fine Art America State tax departments and lawmakers have joined individual and business taxpayers in closely watching and anxiously awaiting any possible changes to the federal tax code. Just like businesses and individuals, states will benefit or suffer depending on what the House and Senate tax reform conference committee decides. Most states collect some sort of tax — only Alaska has no income and no state (but some local) sales tax — and most of those states tie their tax methods, especially when it comes to income tax collection, to federal law.... Read more →


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 →