Regulations on Bonus Depreciation Are Mostly as Expected
Posted on Aug 7, 2018 in News, Tax Accounting
The proposed regulations addressing section 168(k) bonus depreciation largely conform to expectations, however there were a few unanticipated elements. In her recent comments to the press, Ellen McElroy of Eversheds Sutherland (US) LLP highlighted the IRS’ failure to address the drafting error that left qualified improvement property ineligible for bonus depreciation. McElroy also...
OMB’s Review of 199A Regulations to Be Completed in Ten days
Posted on Jul 25, 2018 in News, Pass-through Taxation
Last week, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) received draft proposed computational section 199A regulations from Treasury. OIRA’s expedited deadline for this review is ten business days after receipt of all necessary information, subject to extension as agreed with Treasury. Guidance sent to OIRA is generally subject to a 45-day...
Nunes’s Proposed Legislation Would Consider Inflation in Determining Capital Gains Tax
Posted on Jul 23, 2018 in Individual Taxation, News
Devin Nunes, a Republican member of the House Ways and Means Committee, has introduced legislation to index capital gains for inflation. Under Nunes’s legislation, the tax basis of a capital asset for purposes of calculating capital gains would be adjusted for inflation. Republican Senator Ted Cruz has introduced similar legislation in the Senate, and Congressional Republicans are...
The Tax Cuts and Jobs Act Could Impact Intangible Valuation
Thomas Amendolari, a senior economist at the Treasury Department, recently stated that many of the fundamental aspects of determining the discount rate, for purposes of valuing intangible transfers under the section 482 regulations, may be affected by the 2017 TCJA. While the economic effects of the TCJA may increase discount rates, Amendolari noted that it is not yet certain and...Brady Announces that the Outline of Phase 2 of Tax Reform will be Released Next Week
Posted on Jul 18, 2018 in Individual Taxation, News
Kevin Brady, Chairman of the House Ways and Means Committee, announced on July 18, 2018 that an outline of the “phase 2” tax reform legislation will be released during the week of July 23rd. Brady also stated that the phase 2 legislation will not include any technical corrections or refinements to the 2017 tax act and that the focus of the legislation will be to make permanent the...
The Office of Management and Budget Received Draft Transition Tax Regulations
Posted on Jul 17, 2018 in International Tax, News
On July 13, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) acknowledged receipt on its website of proposed rules under section 965. The rules are currently under review, but OIRA has indicated that they are not economically significant, and therefore the normal 45-day review timeline (subject to extension) applies. Read more: Transition Tax...
Vote on Technical Corrections Bill Not Expected Until After Midterm Elections
Posted on Jul 13, 2018 in Individual Taxation, News
While House Republicans are in the process of drafting a technical corrections bill, House Republican leaders do not expect vote a on the bill until after the midterm elections in November. The technical corrections bill would be separate from the “phase 2” tax legislation that would make the individual tax cuts implemented by the 2017 tax act permanent. Kevin Brady, chairman of the...
European Commission Discussing Implementation of the TCJA with U.S. Officials
Posted on Jul 13, 2018 in Individual Taxation, News
According to Valdis Dombrovskis, a European Commissioner, the European Commission is speaking with U.S. officials about the Commission’s concerns with the 2017 tax act. European finance ministers have claimed that some provisions of the act violate international norms and double taxation treaties, especially the Base Erosion and Anti-Abuse Tax (or BEAT), which some commentators claim...
The White House Office of Management and Budget Has Not Yet Reviewed any New Tax Law Rules
Based on a new arrangement between the White House Office of Management and Budget (OMB) and Treasury, regulations and other guidance that have policy or economic significance will undergo a compliance review by the OMB. A senior administration official recently stated that Treasury and IRS have not yet sent any new tax regulations or guidance to the OMB for review, despite officials...Legislative Changes to the International TCJA Provisions to Be Considered
Posted on Jul 11, 2018 in Individual Taxation, News
In a recent interview, Kevin Brady, chairman of the House Ways and Means Committee, stated that legislative changes to the international provisions of the TJCA are in the works and that these changes may be included in the legislation associated with phase 2 of tax reform, which Brady indicated would be reviewed by House Republicans in July. President Trump has also weighed in on the...
Phase Two of Tax Reform Will Retain Pretax Benefits of 401(k) Plans
Posted on Jul 5, 2018 in Employee Benefits, News
A spokesperson from the House Ways and Means Committee recently stated that the new tax proposals will not revise the pretax treatment of 401(k) savings plans. House Ways and Means Committee Chairman Brady previously stated, in an interview, that the phase 2 tax proposal might address retirement and include a savings element. Read More: Ways & Means Quashes Rothification Concerns...
Markup for Legislation for Phase 2 of Tax Reform Is Expected After August
Posted on Jun 26, 2018 in Individual Taxation, News
House Ways and Means Committee Chair Kevin Brady indicated that a new tax bill may be marked up after the August recess, a date later than his previous estimate. Brady also noted that parts of the phase 2 legislation may be pulled from previous Senate and House proposals. Read More: Phase 2 Markup Likely Delayed Until After August Recess
Congress Unlikely to Act on Technical Corrections until after November Elections
Posted on Jun 26, 2018 in Individual Taxation, News
Congress appears unlikely to pass a technical corrections bill for the Tax Cuts and Jobs Act prior to the November elections. Senate Majority Whip John Cornyn stated that the corrections are not imminent, and as an indication of further delay, Kevin Brady, Chair of the House Ways and Means Committee, has stated that any technical corrections will be affected by the guidance released by...
House Budget Would Extend Individual TJCA Provisions
Posted on Jun 20, 2018 in Individual Taxation, News
On June 19, 2018, the House Budget Committee released a 10-year budget plan that, if passed, would provide a vehicle to extend the individual tax provisions enacted under the TJCA past their current expiration date in 2025 through the budget reconciliation process. To help reduce the cost of extending the cuts, the budget plan requires committees to submit legislation to reduce the...
Congressman States that the TCJA will not be Amended, Despite EU Criticism
Posted on Jun 7, 2018 in International Tax, News
Rep. Peter Roskam, a Republican member of the House Ways and Means Committee, stated at a conference that, despite criticism from EU officials, Congress does not intend to amend the Tax Cuts and Jobs Act (TJCA). Some EU officials have been particularly critical of the foreign-derived intangible income provision, arguing that the provision essentially acts as an export subsidy which...