Tax Policy

/Tax Policy

199A Pass-Through Deduction Rules Finalized

Treasury issued the final rules on 199A earlier this month.  You can read the rules and accompanying guidance here: 199A Final Rule Revenue Procedure 2019-11 Notice 2019-07 You can also read a terrific “how does it all work” review published in Forbes the other day.  As the writer notes: I believe in giving credit where credit is due, and I'll be damned if the IRS doesn't deserve some serious credit. It was less than 13 months ago that Congress dumped 500 pages of sloppy statutory language on the Service in the form of the Tax Cuts and Jobs Act, and somehow, ...

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199A Pass-Through Deduction Rules Finalized2019-02-06T18:49:35+00:00

Treasury Hits Family Businesses!

The verdict is in, and Treasury’s proposed rules on estate tax valuations of family-owned businesses are broad – very broad indeed. They are, simply put, a direct assault on America’s family-owned businesses. Here’s the take of WealthManagement.Com: Although the details are significant, the bottom line is that the proposed regulations would appear to eliminate almost all minority (lack of control) discounts for closely held entity interests, including active businesses owned by a family. To accomplish that, restrictions under the governing documents and even those under state law would be disregarded for valuation purposes. And Steve Leimberg's Estate Planning Email Newsletter: ...

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Treasury Hits Family Businesses!2019-02-01T19:56:24+00:00

Volcker Report Released. On a Friday. In August.

The headline says it all. The long-awaited Volcker Tax Reform Commission report was released last Friday and was immediately put on a shelf someplace in the basement of the Ways and Means Committee. According to the Commission members: The Board was asked to consider various options for achieving these goals but was asked to exclude options that would raise taxes for families with incomes less than $250,000 a year. We interpreted this mandate not to mean that every option we considered must avoid a tax increase on such families, but rather that the options taken together should be revenue neutral ...

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Volcker Report Released. On a Friday. In August.2019-02-04T15:47:04+00:00

Small Business & Extender Tax Bill Update 2.0

After reappearing briefly last week, the latest version of the tax extenders package (Baucus IV) has now disappeared. The plan was for the latest version to garner sufficient support and then be attached to the small business tax bill, but the small business bill was pulled, ending the chances of the extender package getting adopted before the August break. That means all those tax provisions that expired at the end of last year, including the R&E tax credit and the state sales tax deduction, will have to wait until September at the earliest before getting another shot. That's too bad, ...

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Small Business & Extender Tax Bill Update 2.02019-02-04T15:47:04+00:00

Small Business & Extender Tax Bill Update

If you watched the Senate floor yesterday, you might be under the impression that nothing was happening. The Senate spent most of the day in a Quorum Call (Senate code for nothing happening), and when a member did take the floor, often it was to speak about something other than small business taxes. Ah, but still waters run deep, don't they. Behind the scenes, two efforts were taking place. First, Leaders Reid and McConnell were continuing their back-and-forth over whether Reid would allow any amendments to the underlying small business tax bill and, if he did, what those amendments would ...

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Small Business & Extender Tax Bill Update2019-02-04T15:47:04+00:00