With the year-end quickly approaching and time running out on whether or not a major tax overhaul will be enacted before December 31, year-end tax planning has become a big question mark in recent weeks. However, with the Senate passing the “Tax Cuts and Job Act” by a slim vote just this past December 2 and with the House tax bill passing last month, the next step is for the House and Senate tax bills is to be hammered into one consolidated piece of tax reform legislation.
Although there are differences in the proposals of the House and Senate versions, there are many common objectives. Reducing tax rates for individuals is key, as well as the implementation of a reduced income tax rate on “pass-through” business income. However, reducing and/or eliminating certain itemized deductions is being looked at as a strong consideration as well.
When the tax proposals may be enacted and what the final version of the tax reform legislation will be is anyone’s guess at this time. However, year-end tax planning opportunities do exist and should be considered given the tax proposals being negotiated at this time.
If you would like to schedule a phone meeting or office visit with one of our tax professionals to discuss the tax proposals and how you may be affected in your specific tax situation, please call our office to schedule a time.