Ways and Means Committee Amends the Tax Cuts and Jobs Act
On Monday, the House Ways and Means Committee approved an amendment offered by Kevin Brady to the proposed tax reform bill. The amendment revises the rules targeting the international base erosion by providing a foreign tax credit, among other items. This amendment also imposes an additional holding period requirement for capital gain on carried interest, increasing the holding period from one year to three years. In addition, the amendment also allows employees of non-publically traded companies who receive stock options to defer recognition of those options for up to five years and raises the excise tax threshold on the net investment income of educational institutions to $250,000 of endowment assets per student (up from $100,000).
Read more: Amendment to the Tax Cuts and Reform Act