Tax items in reconciliation bill

[kathyc2]

https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/

Under the title of bill, you can download to Excel the "cost" of items. 

 

[JimTaxes]

Limit the value of itemized deductions to 35 cents on the dollar?  what does not mean

[kathyc2]

33 minutes ago, JimTaxes said:

Limit the value of itemized deductions to 35 cents on the dollar?  what does not mean

Those in 37% rate are limited to taxable income reduction from itemized at a 35% rate.  Scored at ~1.5B per year.

Also included is bringing back Pease, scored at ~18B per year.

[JimTaxes]

4 minutes ago, kathyc2 said:

Those in 37% rate are limited to taxable income reduction from itemized at a 35% rate.  Scored at ~1.5B per year.

Also included is bringing back Pease, scored at ~18B per year.

thank you!

[jklcpa]

This didn't even make it out of committee in the House and why I've always had a policy of not discussing any legislation until it passes.

[kathyc2]

Whatever...  Just go ahead and delete it then.

[jklcpa]

11 hours ago, kathyc2 said:

Whatever...  Just go ahead and delete it then.

Sorry, I didn't mean the forum shouldn't discuss it. I meant that "I" personally don't because it will change.

I heard that the main objections were to the amount it would increase the deficit and debt, the SALT limitation, and by implication, probably the overall limitation on itemized deductions.

Like I said, it didn't make it to the House floor, and Republican senators were already voicing strong objections, so that we know that the Senate would not pass it it's current form there either.

 

[Catherine]

Standard response to client inquiries: there is no sense in discussing anything until a bill has been passed and signed. Until then, all bets are off.

[Lynn EA USTCP in Louisiana]

a local CPA contacted me late last week for my comments on the proposed raise in the SALT cap to $30,000.  I advised her that in all my 36 years of practice I've never commented on a proposed bill.

[Lee B]

If a client asks me how a proposed tax change might affect them, I don't mind answering their question if there is a fairly clear answer.

 

[Sara EA]

Proposals are pretty consistent that a share of some costs will be passed to the states, e.g., Medicaid, education, disaster response.  This means that even if federal taxes go down, state taxes will have to increase.  This kind of negates the argument that an increase in SALT deductions benefits blue states.  Residents of red and blue states alike will find themselves bumping into the cap.

Many of the proposals also add a lot more complexity to the tax code.  Tip income is exempt at certain income levels and certain occupations. Interest on loans for certain cars will be deductible--how do you calculate that without a lot of paperwork?  It goes on.  If they are going to pass this thing, let's hope they do it soon because our CE providers need time to put together courses and we need time to take them and digest it all .