BDO Breaks Down the Latest Details on Tax Reform

This month, the House of Representatives released a draft tax reform bill titled the “Tax Cuts and Jobs Act,” which represented the first significant and detailed step toward tax reform under the Trump Administration. The House passed its tax bill on November 16; however, the Senate Finance Committee has released its own version of the proposed tax reform legislation that is now under consideration.

Congress is moving quickly to advance tax reform legislation, although it is unclear when or if an agreed bill will be passed by both houses of Congress. As drafted, most of the provisions would be effective for the 2018 tax year. Thus, it is important to understand the proposed changes and potential impacts now.

Though there are similarities between the two proposed legislations, the bill under consideration by the Senate Finance Committee differs from the House bill in several respects. These differences include changes to the following:

• Individual tax rates,
• Itemized deductions,
• Retaining the estate and GST taxes,
• The timing of changes to the corporate tax rate,
• And pass-through entities.

The professionals in BDO’s National Tax Office break down provisions included in the bills that will have major impacts both domestically and internationally. In a recent Federal Tax Alert, BDO’s professionals provided an overview of the differences between the House and Senate versions of the tax reform bill.

About BDO:

BDO USA, LLP (BDO) is one of the nation’s leading accounting and advisory firms. In addition to their strong and growing national footprint – through 63 offices and more than 500 independent alliance firm locations in the U.S. – BDO offers more than 1,300 offices in over 150 countries, helping clients advance their business goals across industries, throughout the country and around the world.

BDO develops thought leadership publications and events to help businesses stay abreast of emerging trends and requirements. For additional information and links to various resources and tools, visit: www.bdo.com/insights or follow along on Twitter @BDO_USA_Tax.

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This post was written by Elevate, Inc.