This Tax Update article is authored by Laurie A. Hunter, Kevin D. Millard, Jonathan F. Haskell and Heidi J. Gassman.
This Tax Update article is authored by Laurie A. Hunter, Kevin D. Millard, Jonathan F. Haskell and Heidi J. Gassman.
President Trump signed the 2018 Tax Act into law on December 22, 2017. Most of the provisions apply only to taxable years starting January 1, 2018 through December 31, 2025. The changes in the corporate tax rates are permanent. Wade Ash intends to send out a newsletter in February that will summarize more fully the provisions of the Act, especially as affecting estate planning. The following is a list of some of the major provisions:
On June 25, 2015, the Supreme Court of the United States held in the King v. Burwell decision that tax credits for health insurance premiums are available to taxpayers in every state, regardless of whether those taxpayers live in a state which has established its own health insurance exchange or a state which instead uses a federally-established exchange. Chief Justice Roberts delivered the 6-3 decision.
Mitch Morrissey, the Denver District Attorney, recently shared this Consumer Advisory called Hang Up Before You Pay.
Congress did not pass an extension of the opportunity for taxpayers age 70-1/2 and older to contribute up to $100,000 from an IRA directly to charity, so that income exclusion expired at the end of 2013. On May 29, 2014, the House passed H.R. 4619 (The "Permanent IRA Charitable Contribution Act of 2014") that would make that income exclusion permanent. In addition, the House also passed H.R. 3134 (The "Charitable Giving Extension Act") which would allow an individual taxpayer to deduct charitable contributions made after December 31, but before the due date of the individual's return; and H.R. 2807 (The "Conservation Easement Incentive Act of 2013") that would make permanent some of the liberalized rules for deducting the value of charitable contributions of conservation easements (that also expired at the end of 2013). Tax extender bills have stalled in the Senate, so it is unknown whether this will pass in time to permit taxpayers to make this kind of contribution in 2014.
There are a number of tax provisions that will expire at the end of 2013 unless they are extended, which has usually happened over the past 10 years or so, on a one- or 2-year basis. Senate Majority Leader Harry Reid tried to bring a one-year extender bill to the Senate on December 19, but it failed. The Chair of the House Ways and Means Committee announced earlier in December that he would not bring an extender bill this year. The expiring provisions include: tax-free distributions from IRAs to charities for persons at least age 70 ½; enhanced conservation easement deduction; a number of energy credits and deductions as incentives for alternative fuel cars, energy efficient appliances and improvements to homes and businesses; enhanced depreciation and credits for equipment purchased by businesses; research credits for businesses; and special rules for capital gains on small business stock.